Stocks report: Mids rule the roost

The expiry of the September Futures had some negative impact on the WIG-20, but it was smaller than previously anticipated. Falling raw-material prices caused some pressure on oil companies and KGHM  which weighed heavily on the WIG-20. On the other hand, construction/real estate, the IT sector and big-cap banks helped the WIG-20 added 0.2 percent, and the overall WIG gained 0.6 percent.

Medium-sized companies performed much better, and their Midwig index set new all-time highs during the week. The biggest market movers were Ferrum (iron mill), which rose slightly above 50 percent on the news that Alchemia had more than five-percent voting rights at its EGM. Generally, investors looked for good medium-sized companies that were market leaders in 2003. Groclin, Stalexport, D´bica and Stalprofil belong to that group. On the weak side were high-flying stocks from the previous weeks, such as Skotan, Lentex and Hutmen.

Among the WIG-20 stocks, KGHM lost the most on the week (eight percent). Market breadth was slightly positive, with 140 stocks advancing, 99 declining and only eight unchanged.

Tomasz Jerzyk, technical analyst DM BZ WBK SA