Stocks report: Smaller stocks gain

The blue-chip WIG20 index posted the smallest gains compared to other WSE indices. The index was primarily kept in the black during the week by heavily-weighted KGHM. Shares of the copper miner went north following a sharp rise of copper prices around the globe, caused by stronger than expected demand from China. PKN Orlen and TP were among the week's biggest disappointments, dropping 4.1 percent and 2.6 percent, respectively.

The unquestionable leaders during the week were again mid- and small-cap stocks, especially those from the food and retail sector, which have recently been fueled by macroeconomic data presenting a surge in consumption demand. One of the brightest spots in that segment was North Coast, whose stock rose on information about its possible takeover of Malma, the troubled pasta producer. LPP stock was just as impressive, soaring after it published good Q1 results.

As far as the current market view is concerned, mid- and small-caps seem to be overbought right now and a moderate cooling would be very healthy for the market's mid-term prospects. In the long term however, local fundamentals and liquidity conditions remain strongly supportive and as long as global conditions do not worsen, we should see a continuation of the positive trend.

Michał Cichosz, analyst DM BZ WBK