Stocks report: WIG20 just below 2,000
KGHM, PKN and banks were leaders on the market. The climbing prices of copper and a vision of a huge dividend resulted in continued momentum. Banks still gained before expected mergers and acquisitions and were very strong, approaching their historical highs. Profit-taking will still have to take place. The tech and telecom sector was weak and banks will have to be supported by other sectors if the WIG20 is to attack the 2,130-point threshold soon. There are some exceptions, such as Netia, but the IT and telecom sector is lacking direction after a huge sell-off in May.
Lotos' IPO gave a 3.4 percent return with quite a huge sell-off during the first session. Investors who bought Lotos from the Treasury Ministry made a small profit considering transaction costs and a 96 percent reduction in buy orders. Those using leverage are, however, in a tough situation - Lotos wasn't profitable and there is still questions over whether it will climb or fall.
The future of the WIG20 remains optimistic if we look at charts, but current fundamentals are not so bright. Perhaps CPI and industrial production figures later this week will show some optimism and support the stock market.
Adam Łaganowski,
Warsaw Investment Group (WGI)
Lotos' IPO gave a 3.4 percent return with quite a huge sell-off during the first session. Investors who bought Lotos from the Treasury Ministry made a small profit considering transaction costs and a 96 percent reduction in buy orders. Those using leverage are, however, in a tough situation - Lotos wasn't profitable and there is still questions over whether it will climb or fall.
The future of the WIG20 remains optimistic if we look at charts, but current fundamentals are not so bright. Perhaps CPI and industrial production figures later this week will show some optimism and support the stock market.
Adam Łaganowski,
Warsaw Investment Group (WGI)
