Stocks report: A short-term slide

The start of the week was very quiet and both the WIG and big cap WIG20 moved narrowly and even set new all-time highs, if barely.

On Thursday, however, both indices plunged by nearly three percent. It was difficult to pinpoint a particular reason, but selling pressure was noticeable as all the firms from the WIG20 finished in the red. Friday's session ended with small gains, but was unable to erase the previous day's negative impression. I think that some investors preferred to cash some gains after the recent rally.

The worst performing sector was telecoms, but construction / real estate and banks were also hit. TP lost nearly six percent on the week, due to the record fine that is to be imposed in mid-February by the sector's watchdog. Netia was also in the news, as it revealed some details about its Play brand of 3G services. Oil was the best performing sector, due to further gains in crude oil futures.

The market breadth was negative for the week, as twice as many stocks declined as rose. I think that this suggests further downward pressure in the coming week, but in the longer perspective, I think that the overall trend is still up.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA