Stocks report: Big four boost WIG20
The rise was driven by KGHM, PKN and banks. It is hard, however, to talk about a bull market period, as only selective stocks are rising. Small and midcaps were rather flat, and among WIG20 members only four stocks showed real strength. If others do not join the bulls, the WIG20 will have to stop its dynamic uptrend. KGHM continued the rally because of the rising copper price and the news it's back in talks to sell telecom subsidiary Dialog.
Lotos, a recent debutant on the WSE, failed to show any strength and was halted at the zł.29 level - the price it was sold for during its IPO. The sentiment for stocks is good, however, one must be cautious in selecting the sector of the market to invest in. The first biotechnology company on the WSE, insulin producer Bioton, noted new historical highs, but the rally ended very quickly. Bioton has excellent prospects for the future and can quickly continue to rise.
The Polish bourse is facing a crucial moment. The WIG20 is relatively high compared to falling industrial production dynamics and rising political risk as elections near. As interest rates are expected to further fall this year some stocks are clearly undervalued, but they are seeing no interest from investors. If the four companies - PKN, KGHM, Pekao and BPH - cease to rise, the possible sell-off could hit the whole market.
Adam Łaganowski,
Warsaw Investment Group (WGI)
Lotos, a recent debutant on the WSE, failed to show any strength and was halted at the zł.29 level - the price it was sold for during its IPO. The sentiment for stocks is good, however, one must be cautious in selecting the sector of the market to invest in. The first biotechnology company on the WSE, insulin producer Bioton, noted new historical highs, but the rally ended very quickly. Bioton has excellent prospects for the future and can quickly continue to rise.
The Polish bourse is facing a crucial moment. The WIG20 is relatively high compared to falling industrial production dynamics and rising political risk as elections near. As interest rates are expected to further fall this year some stocks are clearly undervalued, but they are seeing no interest from investors. If the four companies - PKN, KGHM, Pekao and BPH - cease to rise, the possible sell-off could hit the whole market.
Adam Łaganowski,
Warsaw Investment Group (WGI)
