2006 in review: A banner year for the WSE

The bourse's profitability was propelled by booming global stock markets, a huge inflow of money into mutual funds and strong corporate profitability. The WIG, the main index, rose by 40 percent, while Poland's blue-chip index, the WIG-20, rose by 25 percent and the mid-cap MIDWIG index increased by 70 percent. But the steepest growth was seen in the WIRR small-cap index, which increased by 130 percent. In terms of sectors, construction companies led the pack, with the construction industry benchmark, the WIG-Budownictwo, up 150 percent; the banking and food industries followed, each recording an approximately 50 percent increase. However, analysts think comparable growth rates are unlikely in 2007, which is set to be a much more volatile year, and a correction of more than 10 percent as early as January is probable. They think the WSE will continue to grow overall in 2007, though, especially if the government is less cautious about privatizing state-owned companies through IPOs. (Puls Biznesu, p. 4) R.M.