Russia's troubles continue to weigh down WSE
Some analysts attributed the market's dip to uncertainties about Russia's economic stability. Russia is busy hammering out a $10 billion-$15 billion aid package with the International Monetary Fund (IMF) that will hopefully prevent the devaluation of the ruble.
"I'd have to say it has a lot to do with external factors such as Russia," said Mark MacRae, an analyst for ABN Amro Securities.
In company news, banking group Pekao, last week signed contracts with the U.S.'s Alltel Information Services for new banking software, going ahead with the group's plan to overhaul its technology despite the fact that it is about to be sold to a strategic investor.
Pekao said the deal with Alltel was worth $40 million, significantly lower than the $100 million analysts expected the bank to spend on new technology. The new software will help Pekao connect the 563 branches run by its main bank, Pekao, and three regional institutions.
Pekao went ahead and purchased the software despite the fact that the government is going to sell 35% of its shares to a strategic investor this fall, and that the new system could be incompatible with that of an outside partner.
Right now Pekao and its three subsidiaries - Bank Pekao, Pomorski Bank Kredytowy of Szczecin (PBKS), Powszechny Bank Gospodarczy (PBG) of lodz and Bank Depozytowo-Kredytowy (BDK) of Lublin - all use different, incompatible technology.
Pekao said the new system will be up and running by the first half of the year 2000. It will extend the system to all the group's branches by mid-2001, the bank said.
The sale of 35% of Pekao is part of the banking group's ongoing privatization. The Treasury Ministry already floated 15% of the bank's shares on the WSE in June. Now ministry officials and adviser Credit Suisse First Boston are beginning the search for a strategic investor.
"Right now we are working on an information memorandum," said Michal Dobak, deputy director at CSFB. "Soon we are going to publish an invitation for the tender."
Alltel already works with several U.S. banks, including Citibank, NationsBank, Chase Manhattan, Bank of America and Republic Bank of New York. Last year the company had revenue of $3.26 billion.
On the mutual fund market, in a move to reassure investors, or maybe to call attention to itself, fund manager Skarbiec asked rating agency Standard & Poor's to give a grade to the Skarbiec-Kasa money market fund. S&P gave the fund, which invests primarily in Polish treasury bonds and bills, its highest rating - an AM. The rating, which S&P released June 25, comes in the midst of an advertising campaign Skarbiec kicked off at the beginning of the summer.
Skarbiec hopes that the rating will reassure its customers, who may not understand that it invests in some of the safest instruments available.
Other fund managers questioned why the fund got the rating. Geoffrey Skipper, chief investment strategist for Pioneer First Polish Investment Fund, said ratings usually have more weight with riskier funds. The Skarbiec-Kasa fund invests clients' money "in the safest possible instruments on the Polish market," Skipper said. He added that giving a rating to relatively risk-free funds actually provides clients with little useful information about the fund's management.
"I'd have to say it has a lot to do with external factors such as Russia," said Mark MacRae, an analyst for ABN Amro Securities.
In company news, banking group Pekao, last week signed contracts with the U.S.'s Alltel Information Services for new banking software, going ahead with the group's plan to overhaul its technology despite the fact that it is about to be sold to a strategic investor.
Pekao said the deal with Alltel was worth $40 million, significantly lower than the $100 million analysts expected the bank to spend on new technology. The new software will help Pekao connect the 563 branches run by its main bank, Pekao, and three regional institutions.
Pekao went ahead and purchased the software despite the fact that the government is going to sell 35% of its shares to a strategic investor this fall, and that the new system could be incompatible with that of an outside partner.
Right now Pekao and its three subsidiaries - Bank Pekao, Pomorski Bank Kredytowy of Szczecin (PBKS), Powszechny Bank Gospodarczy (PBG) of lodz and Bank Depozytowo-Kredytowy (BDK) of Lublin - all use different, incompatible technology.
Pekao said the new system will be up and running by the first half of the year 2000. It will extend the system to all the group's branches by mid-2001, the bank said.
The sale of 35% of Pekao is part of the banking group's ongoing privatization. The Treasury Ministry already floated 15% of the bank's shares on the WSE in June. Now ministry officials and adviser Credit Suisse First Boston are beginning the search for a strategic investor.
"Right now we are working on an information memorandum," said Michal Dobak, deputy director at CSFB. "Soon we are going to publish an invitation for the tender."
Alltel already works with several U.S. banks, including Citibank, NationsBank, Chase Manhattan, Bank of America and Republic Bank of New York. Last year the company had revenue of $3.26 billion.
On the mutual fund market, in a move to reassure investors, or maybe to call attention to itself, fund manager Skarbiec asked rating agency Standard & Poor's to give a grade to the Skarbiec-Kasa money market fund. S&P gave the fund, which invests primarily in Polish treasury bonds and bills, its highest rating - an AM. The rating, which S&P released June 25, comes in the midst of an advertising campaign Skarbiec kicked off at the beginning of the summer.
Skarbiec hopes that the rating will reassure its customers, who may not understand that it invests in some of the safest instruments available.
Other fund managers questioned why the fund got the rating. Geoffrey Skipper, chief investment strategist for Pioneer First Polish Investment Fund, said ratings usually have more weight with riskier funds. The Skarbiec-Kasa fund invests clients' money "in the safest possible instruments on the Polish market," Skipper said. He added that giving a rating to relatively risk-free funds actually provides clients with little useful information about the fund's management.
