Stocks report: Negative sentiment

The main reason for the selloff was an overall worldwide negative sentiment for stocks as well as sharp drops in the prices of raw materials futures. Foreign investors belived to be the main selling force on the market, and they were the most active on Thursday.

Copper producer KGHM and oil companies such as PKN Orlen and Lotos, lost the most amongst the biggest stocks. Big-cap banks were also hurt. Techwig, the technological index, took the lightest blows. This was due to the strong performance of biotech company Bioton, which gained five percent during the week.

Telecom operator Netia was also very strong, thanks to its new roaming agreement with Polkomtel for it's P4 subsidiary.

Declining shares outnumbered those advancing by a six-to-one ratio. The winner was Energopol, which gained 14 percent. On the other hand Polnord and PEP were the biggest losers, falling by 17 percent each.

The overall impression is negative, but I count on some retracement in the middle of next week. Investors should follow foreign markets as well as raw materials futures markets, because any sign of reversal should come from there.

Tomasz Jerzyk

Technical Analyst DM BZ WBK SA