Stocks report: Dow records fuel markets

A new DJIA (Dow Jones) record set this week created an optimistic mood worldwide, and investors in Poland reacted positively. The biggest reaction took place on Thursday, when indices opened sharply higher and stayed in the upper range for the rest of the week.

Telecoms and big-cap banks led the market higher, while food stocks were the weakest sector on the market. However, for the second consecutive week, NIF (National Investment Fund) stocks were the undisputed leaders, as five of them topped the best performers list for the week with gains of 43 to 135 percent.

A new supply agreement and talks on exploration of gas and oil fields in Kazakhstan lifted stocks. Cersanit bought a nearly 78-percent stake in Romanceram (a Romanian ceramics producer) for EUR  (zł.9) million, which had been whispered about previously, but investors still reacted positively.

Of the big-cap stocks, Agora lost the most because of lower than expected sales of Gazeta Wyborcza.

Market breadth was positive, with 142 stocks gaining on the week and 98 declining, resulting in a ratio of 1.4 to one for gainers, which suggests further gains in the coming week.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA