Stocks report: WIG hits historical high
Software and internet stocks were leaders, and this time the gains of the blue chips were followed by even bigger gains by small and midcaps. The WIG20 was also very strong, with the 2,2000-point level broken. The WIG20 was 22 percent higher relative to its bottom two months ago.
Interest rates were cut by 25 basis points to 4.75 percent, and strong corporate results and a very positive sentiment for stocks on the global market helped Polish stocks. Foreign demand for Polish assets was also very strong - the złoty strengthened by three percent last week. The picture of the market is positive, and last week was the 12th consecutive week when stocks gained. Some correction is expected by market participants, but there is no real supply that can threaten the bulls.
Last week new IPOs benefited from optimism on the secondary markets. New companies on the WSE included EMC and Internetowy Dom Maklerski.
The average results of TP brought the company share price up by five percent. The company declared a much higher dividend than in 2004. Copper producer KGHM was very strong thanks to high copper prices and a very good offer to sell its Polkomtel mobile network stake to Vodafone and TDC. The prospect of KGHM paying out a dividend as high as zł.15 per share next year meant that investors were keen to buy its stock.
Adam Łaganowski,
Warsaw Investment Group (WGI)
Interest rates were cut by 25 basis points to 4.75 percent, and strong corporate results and a very positive sentiment for stocks on the global market helped Polish stocks. Foreign demand for Polish assets was also very strong - the złoty strengthened by three percent last week. The picture of the market is positive, and last week was the 12th consecutive week when stocks gained. Some correction is expected by market participants, but there is no real supply that can threaten the bulls.
Last week new IPOs benefited from optimism on the secondary markets. New companies on the WSE included EMC and Internetowy Dom Maklerski.
The average results of TP brought the company share price up by five percent. The company declared a much higher dividend than in 2004. Copper producer KGHM was very strong thanks to high copper prices and a very good offer to sell its Polkomtel mobile network stake to Vodafone and TDC. The prospect of KGHM paying out a dividend as high as zł.15 per share next year meant that investors were keen to buy its stock.
Adam Łaganowski,
Warsaw Investment Group (WGI)
