STATE AND PROSPECTS FOR THE DEVELOPMENT OF THE STOCK MARKET IN UKRAINE

Abstract

In this article, the author analyzes the current state and development prospects of Ukraine’s stock market. A developed stock market ensures the economic growth of a country. For its functioning, institutional measures, market infrastructure, investment opportunities (market breadth), available resources and investment objects, and market trends are essential. The author notes a decrease in the number of market organizers in Ukraine and a reduction in the volume of exchange contracts from 2014 to 2022. The growth in trading in 2023 was driven by an increase in military domestic government bonds. Domestic government bonds have averaged 93.2% of all exchange contracts over the past ten years, reflecting the status of Ukraine’s stock market as a sector serving state needs for resource mobilization rather than fostering the economic development of industries, the private sector, and investment expansion. 
The main factors influencing the state of Ukraine’s stock market include the war, its impact on the economy, and institutional factors. Collaboration with international organizations, integration into the European Union, opening Ukraine’s market to foreign issuers, and the development of mobile applications and electronic trading platforms contribute to the development of Ukraine’s stock market. However, the prolongation of military actions, significant infrastructure damage, environmental harm, and the overall deterioration of the economy worsen the market’s development prospects. The presence of significant investment potential in the country, mechanisms for privatizing state enterprises, adherence to international standards, and readiness for market reforms can drive changes in the post-war period.