Netia shares plunge because of gloomy financial outlook

Shares in telecoms company Netia lost almost 18% of their value in trading on the Warsaw Stock Exchange (WSE) yesterday, closing at zl.16.55. Analysts say the share price tumbled amid investor concerns over the company's financial results for the second quarter, to be published in the next few days. In the first quarter, Netia capital group recorded losses amounting to zl.170 million. "I fear that in the second quarter, the figure may be as high as zl.340 million to zl.350 million," said Piotr Kajczuk, an analyst with DM WBK. To make matters worse, rating agency Moody's announced on Monday that it might lower Netia's credit worthiness index, which would reduce the company's chances of obtaining new loans. (Gazeta Wyborcza, p. 17; Puls Biznesu, p. 16) P.J.