Big boys break the record

The Warsaw Stock Exchange's blue chip WIG20 index rose by two percent to a lifetime high of 2,978 points last Friday, boosted by growing commodity stocks.

Among the biggest winners on the large-cap index was Poland's oil giant PKN Orlen, whose share value jumped five percent to zł.65.3, and copper producer KGHM, up three percent to a record zł.92.9. Shares in state-controlled Polish Oil and Gas  (PGNiG) rose by 3.8 percent to zł.3.58, boosted by a report stating that the company might pay out a dividend on its 2005 earnings.

"Commodity stocks are the main driver of growth. Besides that, we are seeing strong foreign demand for TP and PKO BP," said Wojciech Wosko, a trader at Bank Zachodni WBK brokerage. Shares in PKO BP, Poland's largest lender, were up 2.3 percent to zł.35.4, while TP, the country's dominant phone group, gained 2.3 percent to zł.22.3.

After Portuguese bank Millennium BCP announced plans to raise its stake in its Polish arm to 66 percent, shares posted sharp gains percent to a new six-year high of zł.8.3.

Investors do not appear affected by political maneuvers. Last Friday the ruling Law and Justice (PiS) said they would seek to build a parliamentary majority without business-friendly Civic Platform (PO), choosing to hold coalition talks with populist Self-defense.

But not everyone has benefited from the boom. Headline-making Bank BPH  lost ground for the third straight session, easing 0.7 percent to zł.740, after majority owner Italian Unicredit reached a deal over the bank's future. (Reuters)