Market rise expected to continue amid predictions of economic recovery

Fresh purchases by Polish pension funds and foreign investors pushed the War saw bourse higher yesterday, and analysts said hopes for interest rate cuts and better economic prospects should continue to boost the market. The large cap WIG 20 index jumped 4.7% to 1,407.3 points, bringing its gains since the beginning of the year to more than 16%. The daily turnover was a heavy zl.49 1 million against the 2001 average of zl.240 million. "Investors appear to h ave come to the conclusion that there is no reason to wait any more and star ted buying heavily the most liquid stocks as well as high-tech issues," said Ewa Radkowska, a portfolio manager at ING Investment Management in Warsaw. A nalysts said Poland's potential economic recovery and a slight weakening of the zloty once a rate-cutting cycle comes to an end could bring back foreign investors to the market. "Pension funds seem to be buying shares on expected inflows from foreign investors," said Michal Marczak, analyst at BRE Bank br okerage in Warsaw. Analysts expect the central bank to reduce interest rates by a further 200-300 basis points this year after a 750 basis cut in all of 2001 as inflation fell to a post-1989 low and economic growth slowed sharply . (Reuters)