Stocks report: Short week with short gains

The WIG-20 index gained 1.5 percent on the week, while overall the WIG added one percent. Leading sectors were big cap banks and oil companies, which rose due to the better than expected results for Q2. The best big-cap stocks were BZ WBK (parent company of DM BZ WBK, which I work for) and BRE. The weakest branch was real estate, which led the market in previous weeks and now some investors have decided to take some profits. The big hit was Kable's stock, a cables producer from the Silesia region. The company managed to impress investors with an excellent set of Q2 financial results. That caused a breathtaking rise of more than 100% on the week in just two sessions. A forecast for the coming months will depend upon the possibility of sustaining such results in the longer term.

Although the main indices gained on the week, the market breadth remained negative - 140 lost on the week, 91 gained, while 11 remained unchanged. It is not a sign of a strong market, but I believe that positive results, as well as a positive mood on American markets will help to regain some confidence for investors.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA