Stocks report: Making up lost ground

Foreign investors were thought the main buying force on the market. This was mainly due to a Citibank recommendation, which suggested to overweight Polish assets, which followed positive material from JP Morgan.

The general investment mood also improved, after another rate hike in the US. Last month, a similar move caused a worldwide sell off, but this time investors were cheered by the fact that it is probably the last one in the current rate-cutting cycle.

Buyers were focused on big-cap banks and energy-sector stocks, but the biggest gainer was KGHM, due to its upcoming dividend-setting day, on July 4.

The following day PKO BP is scheduled to set its dividend day and Julius Bear announced that it increased its stake in the bank. Both these factors can negatively impact on the WIG20's behaviour, because the index is not adjusted to that, while the other indices may not be negatively influenced.

Last week was very positive for stock investors, and stock appreciation helped to reduce losses from previous weeks. Many investors bet that last week's gains are only a retracement of previous drops.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA