Stocks report: Mid-cap power

Buyers retraced most of their earlier losses, and the mid-cap stocks index, the Midwig, was able to set a new all-time high. The other indexes posted healthy gains.

The WIG20 added two percent on the week and the overall WIG market index gained 2.5 percent. Meat processor Duda rose sharply and finished the week 16 percent higher, still due to press comments about the company's future prospects.

The market breadth was positive, because 192 stocks were up, while only 59 dropped on the week, suggesting strong buying pressure. Among the big caps, KGHM was in the news. It expects its 2006 net profit to exceed expectations, 40 percent of which will be paid out in dividends, which is zł.7 per share (2005's payout was zł.10). Additionally, copper futures rose sharply in the second half of the week, which helped boost the stock by nearly eight percent on the week.

Last week was positive for stocks, and taking into account low interest rates in Poland, as well as good investments results, it seems that money will still pour into mutual funds. It should secure demand for stocks in the coming weeks.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA