Stocks report: Fed cuts boost WIG20

It was a bit of a surprise for investors around the world, as most of them counted on a cut of just 25 basis points.

The move created a strong wave of buying and Poland benefited. Investors were focused on large-cap stocks and especially those sensitive to interest rates such as real-estate and banks shares. The biggest gainers were Polnord, GTC, BRE and ING BSK, which surged around 10 percent on the week. KGHM was also very strong, due to sharp rises on cooper markets, and this helped to lift the WIG20 index.

Not all shares took part in the advance and telecoms, food and media stocks finished in red. Small and medium-sized companies, which were the best performing segment in the first half of 2007, were also relatively weaker.

It was a very interesting week, because the WIG20 managed to retrace most of the losses from the first half of August. I expect another wave of buying early next week, but as the market moves closer to July's highs, I'm afraid there will be more selling in the second part of the forthcoming week.

Tomasz Jerzyk, technical analyst DM BZ WBK SA