As WIG hits new high, analysts say a correction is right around the corner

Analysts say the index will continue to increase for some time, but a correction is approaching since the indices have been constantly growing for two and a half months. "It certainly is not the last record. The bourse indices will climb up in the coming days but there is an increasing number of symptoms indicating that the market may soon go down. In my opinion by as much as 30%," stated Krzysztof Borowski, an analyst with DM KBC Securities. Specialists point to the fact that the recent price increases result from a regress of supply. "The macroeconomic factors, the decrease of interest rates and the fundamental situation of the companies are already included in the prices, even with a certain premium, so it will be increasingly difficult to continue the growth," added Borowski. However, analysts also point to the growth of subindices of the IT sector and construction industry, which may indicate an increase in investments. (Puls Biznesu, pp. 1, 4-5; Parkiet, p. 1,2) E.B.