Stocks report: Good results, but WIG20 flat

Pekao SA and BPH, which are at the center of a disputed merger, posted zł.2.5 billion in profit between them, which was a new record. The stocks of the two reacted with no enthusiasm. The market is now once again targeting the 3,000-point level.

As optimism returned, investors began once again to believe in the bull market. The situation is, however, similar to the one from previous peaks of the WIG20 - sharp moves in both directions preceded the end of the bull market. I wouldn't be surprised if March finished with the WIG20 below 2,500 points. At the moment there are reasons other than speculation to buy stocks in Warsaw. Fundamentals are fully mirrored by the prices and many companies will have problems with repeating their results this year.

The coming week will bring a decision from the Monetary Policy Council (RPP) regarding an interest-rate cut. Very good inflation data and bad unemployment figures make an interest cut a sure bet. But the RPP can surprise the market and could yet postpone the cut. A lower interest rate could trigger a new buy wave on the market.

Last week saw a very good market reaction on the decision by Agora to close its new newspaper, Nowy Dzień. The move was probably forced by the market - Agora's shares were falling sharply this year. The stock opened the year at zł.73 and fell to zł.51 in a couple of weeks. After the closure, Agora's share price immediately rebounded by 11 percent.

Adam Łaganowski,

WGI Dom Maklerski