Ukrainian crisis damages PLN position – analysts

Złoty (PLN) has been negatively affected by the Ukrainian crisis. Since the beginning of the year its course fell by 39.5 percent, and recent Russian offensive scared the investors.

WIG 20 was losing 2.5 percent on Thursday (1.9 percent at the end of the session), Russian index RTS fell by 3.8 percent, and Kiev PFTS experienced a fall by 7.5 percent. WiG-Ukraine, index of largest Ukrainian companies on Polish market, fell by 3.5 percent.

“Geopolitical factors are main reasons of the losses. Ukrainian conflict escalation came when the market was ready to reduce the prices” states Alexandre Baradez, IG France economist for Gazeta Parkiet.

The market is expected to experience more troubles as the conflict continues.

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