IT cools down, market heats up
The market inched up last week, fuelled by domestic investors returning to blue chip stocks after the previous week's profit-taking spree, but it looks as if the IT rally is beginning to slow down at last.
The all-share WIG index rose 1.7% this week to finish at 22,208.2 points. Volume fell 12% to zl. 1.52 billion ($370.73 million).
"Investors are looking for other sectors to move the market up," said Andrzej Kasperek, from Erste Securities Polska.
ComputerLand was the biggest mover of the IT stocks last week, rising 38% to close at zl. 138 per share on its plans to introduce a specialized portal dealing in medical information, said Michal Mierzwa, an analyst at COK Banku Handlowego. The firm has been heavily involved in the computerization of patients' funds, he said.
However, growth for other tech firms was slower than in previous weeks. While Optimus rose 11.7% to zl. 353, Softbank climbed 7% to close on zl. 305, and Prokom ended the week on zl. 269.5, up 4.1%
In banking news, Citigroup sealed its takeover of Bank Handlowy. JP Morgan & Co. Inc., Zurich Insurance Company and Swedbank, which hold around 30% in Handlowy, agreed to sell their stakes to Citigroup for zl. 70 per share. The move came after the U.S. financial group's agreement with insurer Powszechny Zaklad Ubezpieczen (PZU) to acquire its 10% stake in Poland's oldest bank. German bank Commerzbank has also confirmed it will sell its 10% stake in Handlowy to Citigroup.
When all the deals are finalized Citigroup will hold a 50% stake in Handlowy plus 21 million convertible bonds worth 23% of votes that it bought in January.
It has applied to the Banking Supervisory Commission (KNB) for permission to hold up to 75% of voting rights in Handlowy. "The transaction is on its way," said Jean-Pierre Lambert, an analyst at HSBC Securities in London. Handlowy inched up 0.8% to close on zl. 62.5.
In telecom news, the shortlist in the tender for a 25-35% stake in Telekomunikacja Polska (TPSA) was delayed until next weekend, but analysts expected that France Telecom and Telecom Italia would emerge as the frontrunners. The former, with a 35% in TPSA's mobile telecom arm Centertel, is best placed to purchase the stake, Mierzwa said.
"France Telecom has the biggest chance to win the tender," he said.
But last week's dismissal of Communications Minister Maciej Srebro threw a spanner in the works, potentially delaying the sale further as his replacement Tomasz Szyszko gets to grips with his job.
"It was a completely stupid decision at such an important time," Mierzwa said. TPSA rose 5.9%, closing at zl. 39.6.
Last week Exbud postponed an extraordinary shareholders' meeting from Apr. 10 to May 17 with the approval of private investor Michal Solowow. Solowow recently increased his stake in the firm to 10%, but is rumored to hold 20%. While Solowow, who had intended to restructure Exbud, called for the meeting to make changes to its supervisory board, he also approved the postponement. Analysts said it is now possible he will sell his shares to a strategic investor.
"It's possible Solowow will withdraw from the company, and it's very likely he would make a profit," Kasperek said.
At the same time, the firm has been seeking a strategic partner, Kasperek said. According to Exbud, 10 companies are on the list for a controlling stake in the firm, but the most likely is Swedish giant Skanska. "It's a new name and seems to be a real candidate," Kasperek said. Exbud inched up 1.95% to finish at zl. 41.8.
