Experts say strong IT-firm listings shouldn't fool anyone

The Warsaw Stock Exchange (WSE) recently saw the debut of two new-economy companies: Internet portal Interia and high-tech incubator MCI. Since their entrance onto the market, both issues have rapidly appreciated and now stand at 33.3% and 20.8%, respectively, above their initial offering prices. Some observers contend however that these strong market debuts might well be little more than a flash in the pan. That the two companies were the first from the new-economy sector to venture a public offering in the region and are relatively small are probably the main factors contributing to their initial success. For other central European players this doesn't mean that their going public will also automatically be a hit among investors. Though in both Poland and Hungary IPO candidates from the sector are gearing up to enter the market, many analysts are skeptical. Investors, they say, are still wary of anything having to do with high-tech or the Internet. What's more, foreign institutional investors showed little interest in Interia or MCI. And the WSE, similar to world markets which heavily influence it, is now experiencing a bout of the bears. All this, experts say, could signal a swift downturn in Poland's new economy. (Prawo i Gospodarka, Feb. 3-4, pp.1,5; Reuters)