Stocks report: Hot IPO season
QI results were overall good, with banks and copper producer KGHM on the top of the list. The coming months seem to be well dominated by the IPO market, which is already attracting capital from the WSE and mutual funds.
After a bearish period on the WSE in March and April, Polish stocks remained very weak in the first week of May. Last month brought a further reduction in pension funds (OFE) stock holdings. In April OFE reduced its exposure on equities by zł.1.3 billion to 31,6% of the total assets value. The WIG20 lost 7% in April - but what can be considered the main factor behind that fall? The bearish sentiment of OFE to stocks can be, however, considered a good sign for the WSE because if the OFE have already reduced their holdings, the demand can rebuild.
In the coming days the events on the IPO market will drive the movements of capital in Poland. The public offering of the Lotos oil company will start May 16. The IPO will certainly attract a lots of individual investors because the past ex-state owned blue chip IPOs showed positive returns.
Adam Łaganowski,
Warsaw Investment Group (WGI)
After a bearish period on the WSE in March and April, Polish stocks remained very weak in the first week of May. Last month brought a further reduction in pension funds (OFE) stock holdings. In April OFE reduced its exposure on equities by zł.1.3 billion to 31,6% of the total assets value. The WIG20 lost 7% in April - but what can be considered the main factor behind that fall? The bearish sentiment of OFE to stocks can be, however, considered a good sign for the WSE because if the OFE have already reduced their holdings, the demand can rebuild.
In the coming days the events on the IPO market will drive the movements of capital in Poland. The public offering of the Lotos oil company will start May 16. The IPO will certainly attract a lots of individual investors because the past ex-state owned blue chip IPOs showed positive returns.
Adam Łaganowski,
Warsaw Investment Group (WGI)
