Increase in Chinese interest rates hits KGHM hard

Such a significant fall in the company's share price has not been noted for the last three months, as the company has so far recorded a 60% rise in its share price since the middle of March. The decision of the Chinese central bank alarmed investors. As a result, the WIG20 decreased by 2.9%. Investors were afraid that the cooling off of the Chinese market may cause lower demand for resources, copper included. Despite the fluctuations during the day, the price of copper fell eventually by a mere 1.5%. The last increase in interest rates in China took place in October 2004 and KGHM's reaction also resulted in a fall in the share price (4.4%). However, whether or not the current decrease in KGHM's share price will prove to be a trend or a one-off event, investing in the company's shares is becoming increasingly risky. (Parkiet, p. 1) M.K