Stocks report: Results move the market

Polish stocks retraced some previous gains during the week of August 4-8 and this was linked with falling raw materials futures on global markets, as well as with the reversal of the Polish złoty, which started to fall against major currencies. The blue-chip WIG20 and overall WIG indices plunged 3.9 and 3.2 percent, respectively.

KGHM, the world's fourth-largest copper producer, lost the most among big-cap stocks, but oil companies were also under selling pressure as their sector benchmark lost 6.7 percent. Only IT and construction shares managed to close in positive territory.

A number of listed companies disclosed their Q2 earnings reports and so far the results have been mixed. Some companies managed to positively surprise investors, but generally the market's reaction was quite muted. Only BZ WBK (parent company of DM BZ WBK) managed to rise significantly after its financial report, but that was earlier in the month, when the mood on the market was much better.

During the week of August 4-8 Kredyt Bank reported disappointing results and its stock dropped to a new multi-month low. Publisher Agora reported that its June sales of Gazeta Wyborcza had been 7.9 percent lower than in June 2007 and investors reacted negatively, selling the stock on the news.

The week of August 11-15 should see company earnings move the market, but this will be a shorter week due to a national holiday on Friday, August 15, so trading may be slower than usual.

Tomasz Jerzyk, technical analyst DM BZ WBK SA