Stocks report: The WIG20 bounces back
The reason for the four-percent rebound was the return of foreign funds to Poland. The złoty also strengthened and demand for treasuries on the primary market remained heavy.
Q1 results confirmed that companies listed on the WSE are still in very good condition. PKN Orlen, the nation's largest oil company, reported results that beat forecasts. The company posted zł.630 million in net profit as well as a modest sales increase, which along with rising crude prices and Orlen's aggressive acquisition strategy, caused the company's stock price to rise by more than five percent. The rise was unexpected as the newspapers described Orlen's stocks as the largest potential loser due to the IPO of Grupa Lotos.
Not all of the WIG20 behaved strongly. Netia, the WIG20's biggest riddle, said it will pay for the 3G mobile telephony licence, which caused an immediate drop in its stock price. Netia will be a minority owner in the project, which will cost EUR 100 (zł.416) million just for the licence, not to mention infrastructure, marketing and other costs in a highly competitive environment. The market clearly doesn't believe Netia can afford it but if it succeeds, it's stock will clearly benefit.
Adam Łaganowski,
Warsaw Investment Group (WGI)
Q1 results confirmed that companies listed on the WSE are still in very good condition. PKN Orlen, the nation's largest oil company, reported results that beat forecasts. The company posted zł.630 million in net profit as well as a modest sales increase, which along with rising crude prices and Orlen's aggressive acquisition strategy, caused the company's stock price to rise by more than five percent. The rise was unexpected as the newspapers described Orlen's stocks as the largest potential loser due to the IPO of Grupa Lotos.
Not all of the WIG20 behaved strongly. Netia, the WIG20's biggest riddle, said it will pay for the 3G mobile telephony licence, which caused an immediate drop in its stock price. Netia will be a minority owner in the project, which will cost EUR 100 (zł.416) million just for the licence, not to mention infrastructure, marketing and other costs in a highly competitive environment. The market clearly doesn't believe Netia can afford it but if it succeeds, it's stock will clearly benefit.
Adam Łaganowski,
Warsaw Investment Group (WGI)
