Stocks report: All eyes on the Futures

The WIG-20 gained nearly one percent on the week, while the WIG was up 1.3 percent. On Monday stocks went sharply higher due to positive sentiment created by worldwide investors' reaction to US job market data on the previous Friday. There was also significant help from investors buying big-cap stocks due to a premium on WIG-20 Futures.

Open interest on the most active WIG-20 Futures reached an all-time high and this is the biggest risk factor for the coming week. Next Friday all September derivatives will expire and a lot of these shares will certainly be sold to clear the arbitrage positions.

The following sessions were much weaker due to rising selling pressure on foreign markets, which erased most of the gains. Many investors expect a very volatile week with significant selling pressure. Telecoms and big-cap banks were the best performing sectors on the market, while oil and media companies were the weakest.

The market breadth was positive because 161 stocks gained on the week, while 73 lost. It's worth mentioning that small and medium cap stocks behaved far better then large caps.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA