Stocks report: Earnings push stocks higher

 What stood behind the renewed positive sentiment was some upbeat commentary from analysts on the recently concluded earnings season and the improving outlook for upcoming quarters. On average, companies' net earnings in Q1 surged over 18 percent year-on-year. The largest contribution came from banks and the construction sector. Especially with respect to the group of mid- and small-caps, the Q1 earnings season brought numerous impressive reports which showed some upside potential and helped to justify upgrades of companies' valuations. As a consequence, smaller stocks found their momentum again.

Some of the brightest spots this week were Kolastyna, Indykpol and Mostostal Płock, which reported excellent Q1 results. Police also reported good earnings, which helped the stock to continue its rally from the previous week. After several quarters of disappointing quarterly reports, the company finally finished a quarter with a net profit, which allowed investors to believe that there is a chance for a classic "recovery story."

With the lack of potential catalysts in the near future, the upcoming week is not likely to significantly change the current market sentiment.

Michał Cichosz, analyst DM BZ WBK SA