Stocks report: The Friday bounce

First the US Federal Reserve decided to cut its main rate by another 50 basis points. Despite an initially negative reaction, investors decided to buy stocks on the news. In Poland, meanwhile, the Monetary Policy Council (RPP) decided to raise the main rate by 25 basis points, but the decision did not have any impact on investors' activity.

Last week saw telecom shares sharply higher, with both TP and Netia gaining more than nine percent on the week. TP surprised investors with their Q4 financial figures, while Netia disclosed that would sell its 23-percent stake in mobile operator P4 for E130 (zł.460) million. Due to a tax shield, Netia is expected to earn zł.300 million on that one-off transaction.

Construction companies and developers were also strong, probably because investors are counting on good quarterly earnings. On the weak end, the oil sector remained the only loser among market sectors and this was due to a more than four-percent slide on PGNiG's share price.

The mood on the market was generally much better last week, but there is still quite a lot of uncertainty and investors prefer to cash in on profits quickly.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA