Analysts remain unconvinced by recent significant stock market gains

The key WIG 20 index closed 3.5% higher yesterday, after foreign investors a nd local pension funds rushed to buy. However, analysts are predicting that profit-taking may mean the gains are short-lived. "I don't think such sharp gains will be sustainable. We are a bit overheated and may see a slight corr ection soon," said one Warsaw-based trader. "The situation in the long run d epends mainly on how the budget is dealt with, the outcome of the government 's likely clash with the Monetary Policy Council (RPP), and the situation on international markets," explained Michal Wozniak, investment advisor with AB N Amro. Other analysts say the situation may improve next year, when interes t rate cuts begin to have a positive impact. (Rzeczpospolita, p. B1; Gazeta Wyborcza, p. 23; Reuters) J.K.