Stocks report: Indices post strong gains

Investors around the world had waited for the US Federal Reserve's decision on key interest rates. These remained unchanged, and even though this move was broadly expected, it pushed investors to buy and created a positive mood on global markets.

In Poland, typically interest-rate-sensitive sectors such as banks and real estate/construction benefited the most. Also, media shares were strong, as Julius Baer increased its stake to over seven percent of Agora's shares (over five percent of votes at the shareholders' meetings). Food and oil companies gained the least, relatively, but most investors were focused on small and medium-sized companies. Cashflow was the star of the week and its price surged more than 63 percent, after the company presented its new financial forecast for 2007-2009, which was far more optimistic.

Mostostal Export was also sharply up, as the company's CEO said it would get rid of excess assets and focus on real-estate development. The stock surged by nearly 55 percent on the week. Among other darlings were Ecard, Kompap and Hygienika. Intersport and Hoop lost the most, but these shares rose sharply earlier, so it was rather typical profit taking.

The WIG and the new mid-cap index, the mWIG40, managed to set new all-time highs, and this suggests further gains.

Tomasz Jerzyk, technical analyst DM BZ WBK SA