MHP shares react to escalation of US–Iran conflict

Shares of MHP fell 5.7% on the first trading day following the escalation of the conflict between the United States and Iran. On the London Stock Exchange, the company’s shares dropped by $0.48 to $7.9 per share, Forbes reports.

The decline in quotations is attributed both to rising tensions in the Middle East and to the broader downturn in European markets. According to Andrii Nesteruk, Head of Strategy at London-based fintech startup Finteum, around one-third of MHP’s poultry exports are destined for MENA countries — primarily the Gulf states. In addition, Saudi Arabia’s sovereign wealth fund holds a 12.6% stake in the company.

At the same time, the expert notes that if the conflict does not drag on, its impact on the agroholding’s shares is unlikely to be critical.

Additional pressure stems from the overall decline in European stock exchanges.

“Nearly a 6% drop is above the market average of 2–3%. MHP is not a highly liquid stock and has relatively low trading volumes, so its price movements can be sharper,” Nesteruk explained.

Other Ukrainian agricultural companies also showed negative dynamics: Agroton lost 4.9%, Milkiland — 2.5%, IMC — 1.9%, KSG Agro — 1.6%, and Astarta — 0.9%.