Stock report

Polish stocks gained last week and a largely positive mood on all major bourses helped lift prices higher. In addition, the Polish Monetary Policy Council cut the main rate by 0.25 basis points, to 5.75 percent, which boosted demand for real estate stocks as well as financials.

All WSE indices ended higher and the blue-chip WIG20 soared nearly 10 percent. Developers skyrocketed by more than 30 percent on the week, but we need to remember that those shares had been hit particularly hard in recent weeks. GTC, Gant and Echo were the best picks in this sector, with GTC and Gant gaining 34 and 31 percent, respectively.

BRE was the best performing financial stock - it advanced by 22 percent. Media shares also outperformed the market, with TVN adding 19 percent and Agora 11 percent. TVN initiated its stock buy-back last week and this helped a lot. However, rating agency Moody's placed its rating on review with a downgrade possible in the following weeks. The agency noted that TVN may be short of cash to finance development of its 'n' platform.

Not all companies gained. Lotos was the biggest laggard among large-cap stocks, and this was due to a sell recommendation from one brokerage. Lotos stock plunged on the news to new multi-month lows. It lost nearly 10 percent on the week and finished at zł.12.35.

Generally it was a positive week for the Polish market, although bears were quite active at higher price levels.

Tomasz Jerzyk Technical Analyst, DM BZ WBK SA