Stocks report: WSE indices rebound

It all started on Monday, when Asian stock markets ended the day sharply down and passed on their negative energy to the European bourses.

The catalyst for all of this was concern over the state of the US economy, where more and more analysts see clear signs of recession. These worries pushed investors to empty their portfolios around the globe.

On Tuesday, both the WIG and WIG20 indices opened sharply lower and set multi-months lows, but buyers immediately entered the market and managed to cut earlier losses. Later it was announced that US Federal Open Market Committee had decided to cut its key interest rates by 75 basis points in a surprise move. This decision helped a lot and international markets retraced losses in the following days.

The WIG20 did not manage to fully recover earlier losses, however, and closed one percent down on the week. This can be linked to the poor performance of oil stocks, whose sector benchmark shed more than 4.5 percent on the week. Analysts pointed out that the narrowing Ural/Brent differential could hurt oil firms' refining margins, and this was probably why many investors preferred to avoid those shares.

Other indices closed in positive territory and the mid-sized firm index mWIG40 added the most. The best performing sectors were construction and IT.

Tomasz Jerzyk,

technical analyst DM BZ WBK SA