Stocks report: Bank and oil bull market

The small and midcaps market was almost unchanged, the volume was moderate and the market very narrow. The WIG20 hit a six year record of 2,463 - only one percent below its all-time high internet bubble. The MidWIG, meanwhile, was flat and responsible for a very small part of the total market volume.

The bull market was especially strong in the oil sector. Three companies - PKN Orlen, Lotos and Hungarian MOL - hit their historical records. Banks were also very strong with PKO BP, Pekao SA and BPH reaching all-time highs. Turning to TP SA, the telecoms giant rose with strong volumes despite the previously-considered non-cost effective switch of its mobile brand from Idea to Orange that will cost the company 1.6 percent of its yearly revenue. Foreign investors were considered the main factor behind the big rise in the blue chip sector.

The perceived reduced political risks associated with Donald Tusk's sure win in presidential elections and a PO and PiS' victory in the parliamentary elections also helped the złoty. This factor is, however, priced into current market prices and will have a diminishing influence on investors.

Adam Łaganowski,

Warsaw Investment Group (WGI)