Shares lift from their summertime drift
On the week-by-week basis, the WIG was down 1.4% closing Friday, July 14 at 8,486 points. Volume remained low through the week. It was up 14% on the week at the close of trading Friday at zl. 47 million ($20 million).
But the trend was not to continue into this week with the WIG up 3.3% on Monday and 2.5% on Tuesday. Volume surged ahead on Tuesday up 35% at zl. 76 million ($32 million). The high volume was "a good sign for the next few days," said Cezary Iwanski, deputy head of the reasearch division at Bank Pekao Brokerage House. The recent rise could be attributed to the general macro-economic situation, he said. A low inflation rate for June of 1% was a positive sign for the market, as was the possibility that the National Bank of Poland would reduce interest rates once again in the autumn.
But not all analysts agreed that positive inflation figures were behind the recent rises on the exchange. The monthly inflation rate was good news but it had already been forecast, said Pawel Wielgomas, analyst with Polski Bank Rozwoju brokerage house. "I don't think it will have any influence on the market, the reason that the market went up is for sure not because of inflation," he said. The increases in the last two days was due more to June and half-year company results coming out this week. Most of the companies on the exchange have good fundamentals and investors are increasingly focusing on fundamentals when deciding to buy a stock, Wielgomas said. One example of this is Bydgoska Fabryka Kabli (BFK) SA, he said. The company's net profits soared ahead in June at zl. 2.35 million ($1 million) up a whopping 235% from May.
"BFK is a dynamic company," said Iwanski of Bank Pekao Brokerage House. It has won big contracts to produce cables and should benefit from this, he said. One of the company's clients is Telekomunikacja Polska SA (TPSA). In April BFK completed a zl. 30 million ($12.7 million) contract producing telephone cables for TPSA.
Another company riding high on good results is Bank Rozwoju Eksportu (BRE). The company's half year profits are up 237% from the previous year. "It's a good, stable and well-organized company," said Iwanski. It has good information systems and good management, he added. Another company turning in good results at the mid-point of the year is Debica. Its net profit for the January-June period of zl. 21 million ($9 million) is up 93% on sales of zl. 224 million ($95 million). The company's results are driven by strong exports, he said. Polifarb-Wroclaw is another company that has done well on the half-year. The paint company has good contracts with Fiat to paint Fiat 126s and Cinquecentos, Iwanski said. Another company to look out for once its results come out is Okocim. Iwanski said that the brewery had done very badly last year but could expect to have good profits after investing in new product lines.
But the trend was not to continue into this week with the WIG up 3.3% on Monday and 2.5% on Tuesday. Volume surged ahead on Tuesday up 35% at zl. 76 million ($32 million). The high volume was "a good sign for the next few days," said Cezary Iwanski, deputy head of the reasearch division at Bank Pekao Brokerage House. The recent rise could be attributed to the general macro-economic situation, he said. A low inflation rate for June of 1% was a positive sign for the market, as was the possibility that the National Bank of Poland would reduce interest rates once again in the autumn.
But not all analysts agreed that positive inflation figures were behind the recent rises on the exchange. The monthly inflation rate was good news but it had already been forecast, said Pawel Wielgomas, analyst with Polski Bank Rozwoju brokerage house. "I don't think it will have any influence on the market, the reason that the market went up is for sure not because of inflation," he said. The increases in the last two days was due more to June and half-year company results coming out this week. Most of the companies on the exchange have good fundamentals and investors are increasingly focusing on fundamentals when deciding to buy a stock, Wielgomas said. One example of this is Bydgoska Fabryka Kabli (BFK) SA, he said. The company's net profits soared ahead in June at zl. 2.35 million ($1 million) up a whopping 235% from May.
"BFK is a dynamic company," said Iwanski of Bank Pekao Brokerage House. It has won big contracts to produce cables and should benefit from this, he said. One of the company's clients is Telekomunikacja Polska SA (TPSA). In April BFK completed a zl. 30 million ($12.7 million) contract producing telephone cables for TPSA.
Another company riding high on good results is Bank Rozwoju Eksportu (BRE). The company's half year profits are up 237% from the previous year. "It's a good, stable and well-organized company," said Iwanski. It has good information systems and good management, he added. Another company turning in good results at the mid-point of the year is Debica. Its net profit for the January-June period of zl. 21 million ($9 million) is up 93% on sales of zl. 224 million ($95 million). The company's results are driven by strong exports, he said. Polifarb-Wroclaw is another company that has done well on the half-year. The paint company has good contracts with Fiat to paint Fiat 126s and Cinquecentos, Iwanski said. Another company to look out for once its results come out is Okocim. Iwanski said that the brewery had done very badly last year but could expect to have good profits after investing in new product lines.
