Stocks report: Politics still the main factor

Most WIG20 members posted increased sales and profits. Banks, KGHM and software companies fared the best. High earnings - most results topped analysts' forecasts - were not the main factor affecting stock prices. For the second month politics played the main role on the market. The good results, most of which were anticipated, didn't change the overall market outlook much. Volume was sharply down before the second long weekend in November.

Private TV station TVN recorded a 20-percent rise in sales this year, but this didn't affect its share price. Nor did banks BPH and Pekao disappoint the market. Both banks saw increasing profits which this year may top zł.1 and zł.1.65 billion. Copper producer KGHM posted record sales and profits, but some investors considered this moment a good time to sell. KGHM lost two percent from its record high of zł.50. Its zł.690 million profit in Q3 makes KGHM the best performer of WIG20-listed firms so far. Its figures can only be beaten by PKN Orlen, which will release results this week.

If the political situation stops threatening foreign investors, positive Q4 results remain likely, and the WIG20 can easily top its recent highs.

Adam Łaganowski, Warsaw Investment Group (WGI)