Blue-chips are winning as investors wait out the vote

The all-share WIG index was down nearly 0.4% on the week, closing at 8164 points on Friday, Nov. 10. Volume was up 9.5% on the week, at zl. 54 million ($22 million). But by Monday volume had plunged nearly 30%, indicating that investors were just watching the market.
"Investors prefer safe positions," said Pawel Wielgomas, analyst at Polski Bank Rozwoju (PBR) brokerage house.
Concerning international investors, Stephen Pettyfer, Polish analyst at Merrill Lynch in London, said they were holding back, seeing no compelling reason to buy.
With prices in general dropping, there could be a brief flurry of activity going into the election weekend, as speculators anticipate buy orders after the election, analysts said.
Also the Rubbermaid buyout of Dom Plast could stimulate interest in the market.
Those investors that are looking are keeping their eyes on blue-chips, and Polish retail investors are looking more in depth at companies' fundamentals, analysts said.
"Fundamental analysis is winning over technical analysis," said Miroslaw Andrysiak, analyst at PKO BP. Investors are looking for companies which have good prospects for growth, like cable producer Bydgoska Fabryka Kabli and engineering company Rafako, he said.
Investors also are looking closely in tire makers Debica and Stomil Olsztyn, Andrysiak added.
Debica's share price was up nearly 8% on the week, closing at zl. 37.5 ($15) last Friday, while Stomil Olsztyn was up 2%, priced zl. 20.4 ($8.3). The fact that strategic investors like Goodyear and Michelin are interested in taking a stake in Debica and Stomil has a positive influence on the market, said PBR's Wielgomas.
Bank Przemyslowo-Handlowy, Bank Slaski, Gorazdze and Zywiec are other blue-chips that are attracting investor interest, he said.
Analysts consider Polifarb-Cieszyn and Polifarb-Wroclaw also to be fundamentally strong companies. Polifarb-Cieszyn, the leading share-price gainer on the week, was up nearly 12%.
Construction company Mostostal Zabrze also made a good showing last week, with share prices up nearly 7%. Demand for Mostostal Zabrze's shares on the exchange were very strong, often resulting in a surplus of buy orders, Wielgomas said.
Beton Stal entered its third week of leading the fall in share prices. The stock was down nearly 15% on the week, down 37% since its first listing on Oct. 17. Beton Stal is a small company quoted on the parallel market which is very prone to speculation, Wielgomas said.
Electronics company Tonsil was another poor performer on the exchange last week. The company has a lot of problems with debts, Wielgomas said.
The company plans a secondary issue during which Japanese electronics maker Pioneer is expected to take up 10% in the company. Pioneer will give the company new technology and a wider distribution network, Wielgomas said.