Short-term outlook for WSE is 'moderate pessimism'
The Warsaw Stock Exchange is viewed with "moderate pessimism" by a local brokerage in the perspective of the coming three months as the conflict in neighboring Ukraine, weak Q1 results and low inflows to investment houses may, among others, negatively impact the WSE in the coming months, DM PKO BP analysts said.
The moderate pessimism for the coming three months stems from "weak expectations for Q1 results, relatively high valuations as well as external and internal risks," DM PKO BP president Grzegorz Zawada said. "For the equity market we expect a total rate of return between negative 5% and zero," added Zawada.
There are also other risk factors such as the situation in the Ukraine, "slowdown in China as well as the impact of the changes in [pension funds] OFE, especially in the light of net sales of shares in Poland in Q1 and lowering expectations concerning the number of participants who will stay in the system," DM PKO BP chief analyst Artur Iwański said.
