mBank Securities presented its annual investment strategy for the stock market. They are optimistic about the Polish market, but they assume that the easy and rapid post-election growth is behind us and that investor sentiment will be volatile in the coming quarters. The driving forces of the bull market on the Warsaw Stock Exchange are likely to change.

This year, the WIG index is one of the strongest in the world, gaining almost 35 percent since the beginning of January and more than 70 percent from the low in October 2022. The index recently set a new all-time high. The WIG20 also performed well, climbing to a new high in this bull market. The outcome of the parliamentary elections in Poland, which took place on October 15, helped to a significant extent.

For the first time in the history of model portfolios, mBank Securities has set a 100 percent allocation to Polish shares relative to the benchmark. A higher allocation relative to the benchmark means that it has a positive outlook for a given company or sector.

Experts at mBank Securities recommend increasing exposure to companies in the following sectors: consumer goods, industrial, healthcare, and energy. They recommend the most significant reduction in exposure to the financial sector, by almost 7 percentage points. However, they have a more positive view of regional banks, such as Raiffeisen and OTP, and a less positive view of Polish banks.

(Business Insider)