Stocks report: Foreign influence

This pushed investors to empty their portfolios and the Shanghai bourse was particularly hit, dropping by nearly nine percent on Tuesday.

Warsaw stock indices lost ground sharply on that day, and investors sold shares in nearly everything - only eight stocks went up, while 287 finished in negative territory. The WIG20 lost more than 10 percent by Thursday, and some buying was spotted below the 3,200-point level, resulting in a rather shy advance on Friday's session. I think that we are not out of woods yet, and I expect more selling in the coming week.

Many investors are afraid that global stock markets are entering a longer-term correction. However, in the short term the market is oversold, so a higher opening is very likely on Monday.

Construction/real estate and telecoms stocks suffered the most, and their sector indices shed more than seven percent on the week. Media shares fared best, relatively, as their index ended slightly above two percent. The main topic of discussion was still 2006 earnings, but last week, emotions and foreign bourses had the greatest influence on investors' decisions.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA