Bad news hits the WIG20
Along with lower volume, bears brought stock prices lower. Uncertainty is the word that describes best the current situation on Eastern European equity markets. Relatively high prices and lack of new capital result in volatile and low volume times. The WIG20 remains above 2000 points but if investors cease to believe that the upward trend can be sustained, the bears will do their job.
TP SA, one of the top index members, remained relatively stable, although company employees voted for a strike. The biggest Polish telecommunications company revealed last year its plans to cut around 4000 jobs.
The company sees increasing competition and falling profit margins, so the job cuts are necessary in order to remain on the market. TP SA, along with top banks and PKN Orlen, have recently been favorite stocks of foreign investors because of their high stock liquidity. The strike is certainly bad news for the company, and could cause TP SA shares to fall next week.
High pressure on US treasuries this week resulted in profit taking on the złoty and Polish bonds. Very low credit spreads between US and emerging markets' sovereign bonds remained, but increasing yields on American debt securities must result in adjustments on a global market.
Sharp losses on bonds hit the financial sector in the USA, as well as in Poland. Banks were heavily hit by the debt market, and their relatively high prices triggered more courage in profit taking.
Adam Łaganowski, Warsaw Investment Group (WGI)
TP SA, one of the top index members, remained relatively stable, although company employees voted for a strike. The biggest Polish telecommunications company revealed last year its plans to cut around 4000 jobs.
The company sees increasing competition and falling profit margins, so the job cuts are necessary in order to remain on the market. TP SA, along with top banks and PKN Orlen, have recently been favorite stocks of foreign investors because of their high stock liquidity. The strike is certainly bad news for the company, and could cause TP SA shares to fall next week.
High pressure on US treasuries this week resulted in profit taking on the złoty and Polish bonds. Very low credit spreads between US and emerging markets' sovereign bonds remained, but increasing yields on American debt securities must result in adjustments on a global market.
Sharp losses on bonds hit the financial sector in the USA, as well as in Poland. Banks were heavily hit by the debt market, and their relatively high prices triggered more courage in profit taking.
Adam Łaganowski, Warsaw Investment Group (WGI)
