Stocks report: Indices dip lower

Falling raw-materials futures prices are to be blamed for the drop - whereas copper fell at the beginning of the week, crude oil and natural gas lost ground on Thursday.

Oil and construction/real-estate shares were the biggest losers on the week, while food and IT were the only gainers. Undoubtedly, meat producer Duda's stock caught the most attention from buyers. This was mainly due to an increased full 2006 earnings forecast. Duda added more than 27 percent on the week.

Companies which hadn't reported their Q3 results yet finally did so last week, and this time results were more in line with market expectations. The only positive surprise was PGNiG, but market reaction was short-lived, and the drop in natural gas made its mark. Bioton slightly disappointed markets - it was forced to lower its full year forecast, which caused some selling.

Market breadth was negative, because declining stocks outnumbered those rising by a margin of 2.2 to one. Ampli, Mostostal Płock and Kable lost the most, but it was difficult to find a reason, besides profit-taking after earlier strong gains.

I expect some more selling pressure early next week, but I also hope for fewer bargain hunters.

Tomasz Jerzyk, technical analyst DM BZ WBK SA