Polish stocks may yield double-digit rates of return in 2021, and the WIG has a chance to approach its record levels, said Sebastian Buczek, president of Quercus TFI, during the Tuesday conference on forecasts for 2021.
"We expect double-digit rates of return on Polish equities next year. We assume that the WIG will reach 60,000-65,000 points, and possibly close to the all-time record. It is possible that it will break this level," Sebastian Buczek said.
"There are still many companies on the WSE that are cheap or very cheap from a long-term perspective. There is a lot to choose from. The funds that lie on bank deposits are starting to burn investors more and more, so the increasing numbers of people and business entities are starting to wonder how to develop them. Some of this money is already flowing rapidly to investment funds. Some also flow to the WSE, although this stream is still relatively small," he added.
Using the price-earnings ratio, he pointed out that, compared to developed markets, domestic equities are clearly cheaper. He added that, although in the case of domestic entities in recent months, this indicator has increased significantly, taking into account the forecasts of results for 2021, it returns to attractive levels.
In his opinion, in 2021 the domestic indices will grow steadily, and the sWIG80 will not show such a high relative strength in relation to the index of the largest companies as it was in the past year. There is a chance, however, to make up for the discount created in 2020 to other developing markets.
The expert is optimistic about the banking sector, which has a chance to solve problems related to Swiss franc loans.