Stocks report: The emperor returns

Once called 'the emperor of the bourse', Elektrim came roaring back with volumes reaching zł.150 million. The sky's the limit for this stock as many investors calculate asset value per share right now above zł.70. The current price of zł.15 seems to be attractive but one must remember the company is threatened with more trials and has defaulted on debt. The bankruptcy proceedings law is quite favorable for debtors, so Elektrim's existence is actually a gift from lawmakers.

Overall the market was rather flat and showed no reaction to rising US Treasury yields and the weakening złoty. The bourse is moving in a range between 2,720-2,950 points this year and trend-following strategies are failing this time. Investors are holding their breath; the longer the WIG20 stays near historical highs, the more probable it is that it will break through them and finally beat the 3,000-point level. The broad market index WIG already set a new all-time high last week.

Adam Łaganowski,
WGI Dom Maklerski