Stocks report: Sellers Reign

It is tough to single out a concrete reason, but most analysts point to FX markets, where the złoty was weaker against major currencies.

The WIG20 big-cap index shed 1.5 percent, while the overall index, the WIG, lost one percent. Most sector indices finished in the red, and Media and IT were particularly hard hit. Among media stocks, TVN lost the most (nine percent), which was linked with the information that the regulator (KRRiTV) had approved a change of status of broadcaster TV Puls from religious to universal. TVN's CEO told the press that he was not afraid of the new competitor, but investors preferred to sell their shares.

IT shares were lower due to downgrades for some stocks from analysts. Prokom lost nearly seven percent on the week. The best performing sector was construction/real estate, which jumped by more than seven percent. Mostostal Export, Polnord and GTC rose the most, and probably investors are counting on good financial figures for Q4 of 2006, as warm weather should have allowed these companies to improve their numbers.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA