Decrease in the capitalization of Ukrainian agricultural holdings in the second quarter of 2024: causes and consequences

In the second quarter of 2024, the capitalization of the leading Ukrainian agricultural holdings showed a significant decrease of 13.3% compared to the same period last year. Such data was published by the publication "UkrAgroConsult", corroborating them with stock exchange data and own calculations.

According to the information, the total capitalization of eleven Ukrainian agricultural holdings amounted to 11,602.90 million euros, marking a significant decrease compared to the same period of 2023. Most of the companies witnessed a decrease in their market value, with the exception of such participants as "Ovostar-Union" and "Ukrproduct ", which showed growth due to an increase in price per share and trading volumes.

At the end of the second quarter of 2024, there was a positive dynamic growth in the capitalization of "Milkyland" and "Agroton" against the background of the strengthening of the Polish zloty, in which their shares are traded. Similar trends were noted at "Astarta-Kyiv" and KSG Agro, which were also marked by an increase in capitalization.

According to "UkrAgroConsult", such dynamics were caused by internal factors in companies, as well as changes in financial markets and exchange rate fluctuations affecting the market valuation of agricultural companies.

During the corresponding period, a decrease in the capitalization of most agricultural holdings was observed, which is noted as an important aspect in the management of investment risks and asset management strategies in the conditions of global financial fluctuations.

The specified decrease in capitalization in the second quarter of 2024 indicates the need for constant analysis and adaptation of management strategies, because financial markets remain vulnerable to changes in the external environment and internal economic processes.