Stocks report: WIG20 hit by bad Friday

The blue-chip WIG20 index was hit particularly hard and lost 4.4 percent on the week, while other indices lost around 0.8-1.5 percent. It was hard to see a concrete reason for this Friday drop, but it left a negative impression on the whole week.

For most of the week, the indices hovered near their short-term highs and it seemed that stocks would gain ground. Real estate developers led the market down, however, and their sector benchmark lost more than six percent. GTC and JW Construction shares lost the most, erasing more than eight percent.

Energy stocks, financials and construction shares were also under strong selling pressure. National gas provider PGNiG's stock lost 10 percent despite the fact that Poland's energy sector watchdog announced new tariffs. Investors had expected such a move, but sold on the news.

ZA Puławy was the best performing stock among big caps and the company's shares surged more than six percent. On the broad market, LPP - owner of the Reserved clothing brand - announced that it was buying Artman, which owns the House retail chain. Investors liked the news, and Artman's stock price skyrocketed nearly 30 percent, while LPP's shares gained more than six percent.

Generally it was a quiet week, but Friday's session caused some damage, at least in the short term, so I expect more selling at the beginning of this week.

Tomasz Jerzyk, technical analyst DM BZ WBK SA