MHP Shares Drop Over 5% Due to Tensions Between the US and Iran

On the first trading day following the escalation of the conflict between the US and Iran, shares of the agricultural holding MHP on the London Stock Exchange fell by 5.7% to $7.9 per share, representing a decline of $0.48 per share.

This is reported by AgroReview

Impact of the Conflict on Exports and Shareholder Structure

A significant portion of MHP’s chicken exports—about one-third—is directed towards countries in the MENA region, particularly the Gulf states. At the same time, the Saudi Arabian Public Investment Fund owns 12.6% of the company’s shares, which increases sensitivity to events in the Middle East.

Andriy Nesteruk, head of strategy at the London fintech startup Finteum, noted that the key reasons for the decline in share value were the escalation in the Middle East and the overall deterioration of conditions in European markets.

“A nearly 6% drop is more than the average market decline of 2-3%,” explains Nesteruk.

Trends Among Other Agricultural Companies

A negative trend was also observed among other agricultural enterprises. In particular, shares of “Agroton” fell by 4.9%, “Milkiland” by 2.5%, IMC by 1.9%, KSG Agro by 1.6%, and “Astarta” by 0.9%.

Nesteruk expressed confidence that even in the event of a prolonged conflict, the impact on MHP shares will not become critical, although the current decline in European exchanges creates additional pressure on the company’s market value.