Stocks report: Negative mood on the markets

The start of the week was positive as investors hoped for another rate cut in the US. In fact, the US Federal Reserve cut the discount rate by another 25 basis points, but investors preferred to cash in their portfolios on that news.

Drops in US markets set a negative mood around the globe, and selling pressure also appeared on Warsaw bourse. The overall WIG index dropped by three percent on the week, while the blue-chip heavy WIG20 erased nearly 3.5 percent. Interest-rate-sensitive sectors, such as banks and real estate developers, led the market down, but telecoms lost the most. 

Media and food stocks managed to close in positive territory for the week. Among large-cap stocks, KGHM (the world's fourth-largest copper producer) lost the most - eight percent on the week. Falling copper-futures prices pushed investors to sell those shares. TP SA, Lotos and GTC were also down.

Polnord was the top gainer on the WIG20 index, due to positive comments from the company's CEO, who expects far better profits in coming years. Overall, Groclin lost the most, ending 27 percent down on the week.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA