Stocks report: Bulls reign in Warsaw

Initially, investors were selling and the WIG20 lost over one percent. The markets calmed and the stocks closed the week higher but uncertainty was present. The capital was mainly withdrawn from the złoty and fixed-income market, but most of the cash remained in Poland, weakening the złoty by less than one percent.

Polish stocks closed the week above 2,500 points, as indicated by the WIG20 index. Investors were a bit concerned about the politics, but strong international markets helped the market. Very high prices of copper resulted in KGHM beating historical records despite a sell recommendation from Citibank. KGHM, which is also expected to dispose of some of its telecommunication assets this year, hit zł.47.40 a share and was the main mover of the WIG20. Oil companies and banks were flat and telecommunication and software stocks were weaker last week.

The overall market sentiment is very positive. There were no signs of window dressing as Q3 ended with historical records for blue-chip companies. No profit- taking took place also from foreign investors, although treasury yields jumped significantly.

Coalition talks are likely to end in success - and stocks will certainly strengthen.

Adam Łaganowski,
Warsaw Investment Group (WGI)