Stocks report: A slight rebound

Warsaw followed other bourses and both the WIG20 and overall stock WIG indices rose by one and two percent, respectively, on the week.

Oil was the best performing sector and I think that oil firms were hard hit in previous weeks due to the 20-percent advance of crude oil futures. Orlen presented some guidance for 2007 and probably it helped to raise stocks.

KGHM was also strong among the blue-chip stocks - a rise in copper futures helped a lot, but dividend talk also fueled some buying. Last year it paid zł.10 per share, and the chairman of the supervisory board said it could even reach zł.14 per share this year. For sure, the company's shares will be have investors' attention in the coming weeks.

Only IT shares disappointed investors and this was due to the weaker performances of Computerland and Prokom. Skyeurope lost the most with a 12-percent drop on the week, which was partly caused by higher oil prices.

Last week, emerging markets saw a record outflow of funds as international money managers decided to balance their risk exposure in their global portfolios. This is not good news for Poland and it suggests more selling pressure in the coming weeks.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA