The Russian RTS index is already losing more than 8 percent on Monday. This is a real panic for investors who withdraw capital from the Russian market. We saw such declines for the last time right after the outbreak of the coronavirus pandemic. In total, the Russian stock exchange has lost more than 32 percent in the last three months.
The situation is similar on the largest stock exchanges in the region. Warsaw WIG just after 16 fell by almost 5 percent, and the German DAX or Dutch AEX lost over 3 percent.
There is virtually no index in the region that glows green on Monday. Almost all major exchanges are losing heavily. According to analysts, the specter of the escalation of the conflict between Russia and Ukraine is primarily to blame. This is already a panic in world markets.
The threat of Russia’s invasion of Ukraine also has a negative effect on the quotations of Ukrainian companies on the Warsaw Stock Exchange. In the last 10 days, the WIG-Ukraine index has lost more than 18%, and in the last three months it has dropped by over 30%.
The WIG-Ukraine index is a national index calculated by the stock exchange. It consists of companies listed on the WSE, the headquarters or headquarters of which are in Ukraine, or the activities of which are conducted to the greatest extent in that country.
The index consists of eight companies: Kernel, Astarta, IMC, Ovostar Union, Coal Energy, Agroton, KSG Agro and Milkiland. Most of them operate in the food industry.
On Monday morning, the WIG-Ukraine index fell by more than 7 percent. Among the companies belonging to it, the prices of IMC and Coal Energy are going the most down, by over a dozen percent.
The prices are not helped by the situation at the Ukrainian-Russian border, but also by the resulting tension on the US-Russia line. American authorities ordered the families of embassy employees to leave Kiev.
Moreover, as reported over the weekend, the US is looking for emergency gas supplies to Europe in an accidentif there was an armed conflict in eastern Ukraine.
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