Elektrim shares recover as WSE bounces back from four days of losses

Telecoms and power group Elektrim managed to recoup earlier sharp losses on the Warsaw Stock Exchange (WSE) yesterday, as the bourse bounced back after profit-taking had kept its key indices in the red in the previous four sessi ons. The large cap WIG 20 index gained 0.6%, to reach 1,280.6 points, after losing nearly 5% in the past four days. "Investors appear to have taken adva ntage of recent falls and again started buying stocks," said a Warsaw fund m anager. Expectations that the central bank will cut interest rates by as muc h as 150 basis points at its meeting next week should prop up the market in the near term, said analysts. Shares in Elektrim suffered severe losses in e arly trade yesterday on growing worries the cash-strapped firm might lack th e money to buy back euro 480 million of convertible bonds in mid December. A nalysts said Wednesday's news that the State Treasury had agreed to give the conglomerate more time to negotiate a purchase of leading power group G-8 ad ded to the pressure, as the potential acquisition would place further strain on its balance sheet. But late yesterday investors rushed to buy back the st ock after its price plummeted to its lowest level since early 1996. (Reut ers)