Stocks report: Blue chips hit hard

Although both the WIG and large-cap WIG20 set new all-time highs on Monday, investors preferred to sell on higher price levels, and those indices lost 1.5 percent and 2.3 percent respectively on the week. This was due in part to the correction on oil and copper futures markets, which put some selling pressure on oil companies (PKN Lotos and MOL) as well on KGHM (which lost -9.7 percent), which had been the best performing stock among blue chips in recent weeks.

Additionally, some companies disappointed investors with their Q1 earnings, and TP and Budimex were particularly hard hit. TP published lower-than-expected numbers, and its stock price dropped by nearly nine percent on the week. Those names negatively influenced the indices due to their weight, but still many companies were able to continue their rallies.

Investors liked the food and banking sectors, which were the best performing sectors on the WSE, despite the Monetary Policy Council's decision to hike interest rates by 25 basis points to 4.25 percent. Such a decision was widely expected, and that's why it did not have any impact on stock prices. It was the first hike in 14 months, but still interest rates are close to their all time lows.

Tomasz Jerzyk, technical analyst DM BZ WBK SA