Stocks report: More of the same

Polish stocks changed little last week, as the large-cap WIG20 and overall WIG indices managed to inch up by around 0.17 percent. A bank holiday on Monday in the UK could be partially blamed for that, as London-based traders are noticeably involved in WSE trade.

The first half of the week was dominated by sellers who pushed indices to new short-term lows. This was all done on very thin volume and trend was sharply reversed after better-than-expected Q2 GDP figures from the US. Polish indices fully recovered their earlier losses on that news.

Financials were the best performing sector, and BZ WBK (parent company of DM BZ WBK) and Pekao were top picks among particular stocks, gaining above four percent each on the week. BZ WBK managed to surprised the street with their Q2 results.

Oil and construction stocks were market laggards, and their sector benchmarks shed 3.7 percent and 2.2 percent respectively. PKN Orlen lost more than four percent. Polimex Mostostal Siedlce plunged by more than seven percent. This was linked with a downgrade to sell by a respected broker.

Tomasz Jerzyk, technical analyst DM BZ WBK SA