Stocks report: WIG20 moves sideways

Oil stocks were also under pressure because of politicians, as Prime Minister Kazimierz Marcinkiewicz declared his intention to decrease profit margins on fuel. This will leave some space to increase excise duties on fuel, but as gasoline prices fell recently, the retail price should remain almost unchanged. The state's need to raise taxes could spell trouble for PKN Orlen and Lotos investors have already jumped ship.

Global markets seem to have no influence on the WSE at all. Strong US and European markets have not been reflected in the WIG20. Polish stocks are relatively more expensive after rallying this year, and this may stop funds from entering Poland.

The attack at 2,500 was not successful. But history shows that after a rally in Poland and strong correction thereafter, the market always makes a second attempt to make new highs and begin a bear market. If the bull market is to continue, somebody else has to create demand. After a strengthening of the złoty last week, it is obvious that foreign funds are not buying stocks. If the WIG20 fails to grow after the good news, it will fall after bad news. That's the rule of the bear market, which sooner or later will begin in Warsaw.

Adam Łaganowski,

Warsaw Investment Group (WGI)