Stocks report: Big-caps on a roll

Also, due to a premium on futures market arbitrage, traders were extremely active, which lifted open interest to unseen levels. This situation creates additional risk on the market, because those who bet the wrong direction will be forced to close their losing positions, which can obviously increase volatility in coming weeks.

Media, real-estate/construction and big-cap banks were the best performers on the market, while oil producers were the only losers. This was due to falling oil futures prices, but additionally in the case of PKN Orlen, a fire in the Maizeikiu refinery took its toll.

From big-cap stocks, TVN, Polimex and KGHM gained the most, while PKN Orlen ended in negative territory. The top gainer was Energopol Południe, which gained 80 percent on the week due to a possible merger with JW Construction. NFI stocks were the biggest losers, which was due to sharp gains in previous weeks.

Market breadth was extremely positive. Some 191 stocks rose and 55 dropped, giving a ratio of 3.5 to 1, which suggest a strong market and further gains.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA