Stocks report: Selloff in Warsaw

Banks and oil companies in Warsaw were weakest. The previous leaders changed roles and Lotos and PKN were heavily sold off. Banks were also down.

The złoty, which was very volatile last week, was not correlated to the Warsaw Stock Exchange. Equity investors seem also to be not threatened by pre-election political games and coalition-formation talks. Investors are counting on PO and PiS, the parliamentary elections winners, to form the government and are optimistic that money will flow into Poland.

Previously, politics seemed to have no impact on stock prices. After the prices in New York slipped and crude traded much cheaper than in past weeks, Polish politics started to play on investors nerves.

There was, however, something optimistic in the period of mostly red numbers in trading services. PC Guard, a Polish software company, debuted on the Warsaw Stock Exchange with a 100-percent rise in price compared to its IPO price and has continued its gains.

Adam Łaganowski,

Warsaw Investment Group (WGI)