Stocks report: WSE ends week up

It wasn't so obvious that this would happen a few days ago, as another wave of selling spread over global markets. Most of the major indices tested their previous week's lows.

Polish indices behaved slightly better, and this was mainly due to the CECE index rebalancing, which secured a one-time demand for blue chips, adding approximately 1.5 percent to the WIG20's closing value on Wednesday. 

All main and sector indices advanced on the week, and small and medium-sized companies were the darlings of investors. So-called junk shares (FON, Masters and Sanwil, to name but a few) were the best performing stocks, and they soared by 30-55 percent on the week. It is hard to find a reason for the buying. Usually junk stocks rise in the final phase of the whole market advance, so in the longer term it can be treated as an early sign of a possible trend exhaustion.

Media stocks were the best sector, and this was mainly due to TVN shares. Oil stocks gained the least, which was due to declining crude-oil futures.

The stock market is very volatile and it is hard to guess which way indices will follow. I think that major global markets should give us a hint in next week.

Tomasz Jerzyk, technical analyst DM BZ WBK SA