Stocks report: WIG20 sets new five-year record
The sentiment for stocks is very positive, although during the week the złoty and debt markets behaved quite badly. The market also has a new leader - software and internet stocks. With negative inflation figures for June and only 1.4 percent inflation y-on-y, there are very strong prospects for further interest-rate cuts, which helped the WIG20. Strong global equity markets helped Warsaw bourse as well.
After strong oil- and copper-producer stocks, along with banks in the first part of the year, software producers, internet and media companies have taken leadership in the market. The second part of the year is usually good for the TMT sector, and investors were trying to bet on technology and media stocks. WIG20 members Softbank, Prokom and Computerland were all very strong. Also Travelplanet - the internet tourist operator - and other internet companies were gaining. Police, the fertilizer producer, started its career on the stock market. Police, whose name comes from the town near Szczecin instead of what might be thought a public institution, traded four percent above its IPO price. The company was weaker on Friday however, as newspapers criticized its too-high employment and low profitability relative to the sector.
The coming weeks could bring a continuation of the up trend on the WSE. The only thing that can threaten investors is the złoty. If it fails to return to the 4.00 level against the euro, foreign investors will see falling stock prices in their currencies.
Adam Łaganowski,
Warsaw Investment Group (WGI)
After strong oil- and copper-producer stocks, along with banks in the first part of the year, software producers, internet and media companies have taken leadership in the market. The second part of the year is usually good for the TMT sector, and investors were trying to bet on technology and media stocks. WIG20 members Softbank, Prokom and Computerland were all very strong. Also Travelplanet - the internet tourist operator - and other internet companies were gaining. Police, the fertilizer producer, started its career on the stock market. Police, whose name comes from the town near Szczecin instead of what might be thought a public institution, traded four percent above its IPO price. The company was weaker on Friday however, as newspapers criticized its too-high employment and low profitability relative to the sector.
The coming weeks could bring a continuation of the up trend on the WSE. The only thing that can threaten investors is the złoty. If it fails to return to the 4.00 level against the euro, foreign investors will see falling stock prices in their currencies.
Adam Łaganowski,
Warsaw Investment Group (WGI)
