Stocks report: Rough start to the year

On Tuesday share prices went up, because investors counted on the 'January effect' i.e. institutional investors buying. But everything changed on Thursday, when the market opened sharply lower. It was mainly due to an unexpected reversal on US bourses, where early gains were quickly erased and its indexes closed lower. Additionally, raw-material prices lost ground this week, and copper and crude oil were particularly hard hit. It caused heavy supply of KGHM and Lotos shares, which lost 10 and 8.7 percent respectively.

Another topic was the new presidential candidate for the NBP chairman position. Sławomir Skrzypek, acting CEO of PKO BP, disappointed foreign investors who started to withdraw their złoty denominated assets. It caused further selling on Friday, and secured a negative impression for the whole week. The first week of 2007 was a huge disappointment for investors, and that's why I expect more selling in the coming week. The most important factors for investors will be a parliamentary vote for the NBP chairman post and the situation on the commodity markets, with a particular emphasis on copper and crude oil.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA