Stocks report: IPO splash, it's a gas, gas, gas

PGNiG debuted with a price of zł.4 and gave a more than 30-percent return to subscribers, a level that was unexpected by analysts. The price slipped some three percent during Friday's session, but the outlook for the stock is very positive, as there are more new investors than profit-takers.

Politics and elections were also the factors weighing heavy on the market. The WIG20, bond yields and złoty prices depended heavily on election pools. The weakening support for liberal Civic Platform hit the złoty, and the WIG20 slipped four percent from an historical record hit on Monday of 2,551. Oil companies were very volatile and followed international crude prices. Relatively expensive banks experienced moderate profit-taking with no elements of panic. Software companies were the weakest sector of large-caps, and the broad market was stronger than blue chips.

Mid- and small-caps fell less than large-caps, but volume was concentrated mostly on WIG20 members.

Foreign investors are holding very large amounts of Polish assets, with a euro near a year's low and low bond yields. The market is expecting a stable and pro-market coalition of PiS and PO to take power.

Adam Łaganowski,

Warsaw Investment Group (WGI)