The international markets reacted positively to the results of Ukraine’s parliamentary elections

Alexander Paraschiy, the Head of Research at Concorde Capital, says the international markets reacted positively to Ukraine’s parliamentary elections results

The international markets have reacted positively to the parliamentary elections results.

All Eurobonds have grown in price. The most growth was demonstrated by GDP warrants, which gained 3.3% to their historical maximum. It appears that expectations of economic growth and hryvnia strengthening have risen among foreigners.

Western investors like the idea of consolidating power in a single pair of hands. At minimum, it means the end of political instability. It also offers a chance for fast pro-Western reforms. The risk of usurping power doesn’t frighten foreigners. For Western countries, a situation in which one political force forms the government looks familiar and acceptable.

Obviously, the persona of the next prime minister is the first thing that foreigners will focus their attention on. The situation surrounding Privatbank also will be definitive for the future investment climate and Ukraine’s relations with international donors.

Commented Alexander Paraschiy, Head of Research at Concorde Capital (CEO of Concorde Capital is Igor Mazepa) for Interfax Ukraine news agency

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