Steep Rate Rise Seen Sinking Warsaw Bourse
"The market was expecting a hike of some 2-2.5 percentage points, so it will definitely react negatively to a larger rise," said Rafal Lorek, a broker at SG Securities.
"But in the long run this is a good thing for the economy and the further the market falls the better an opportunity to buy now," he added. Poland's decision-making Monetary Policy Council (RPP) raised the main market rate by 250 bp to 16.5 percent and the discount and lombard rates by 350 bp to 19 and 20.5 percent respectively, to quell resurgent inflation.
On Wednesday, the main WIG index rose 1.4 percent to 14,851 as gainers outpaced losers by 126 to 39 with 35 stocks flat. Turnover rose 28 percent to 161 million zlotys on all three markets.
The leading-companies WIG 20 index rose 1.2 percent to 1,432 in the single price auction system, but dipped in the afternoon continuous trade on the news of the interest rate rise.
"But in the long run this is a good thing for the economy and the further the market falls the better an opportunity to buy now," he added. Poland's decision-making Monetary Policy Council (RPP) raised the main market rate by 250 bp to 16.5 percent and the discount and lombard rates by 350 bp to 19 and 20.5 percent respectively, to quell resurgent inflation.
On Wednesday, the main WIG index rose 1.4 percent to 14,851 as gainers outpaced losers by 126 to 39 with 35 stocks flat. Turnover rose 28 percent to 161 million zlotys on all three markets.
The leading-companies WIG 20 index rose 1.2 percent to 1,432 in the single price auction system, but dipped in the afternoon continuous trade on the news of the interest rate rise.
