Stocks report

Polish stocks had a mixed finish last week, as the main indices fell on negative sentiment on foreign bourses, while SMEs managed to close noticeably higher. Investors worldwide waited for US job market data, and they were not positively surprised.

US stock market indices had already discounted the news by Thursday's trading, which of course set a negative tone for Asian and European stocks. Polish large caps also suffered from falling raw materials futures, particularly from crude oil and copper, which caused a sell-off of PKN Orlen and KGHM shares.

PKN Orlen announced that its Q3 bottom line could suffer by zł.200 million due to higher-priced oil inventories. KGHM, the world's fourth-largest copper producer, lost the most among WIG20 stocks and this was directly linked with copper prices. Shares plunged by more than 13 percent on the week and set new multi-year lows on Friday.

On the other hand, plenty of companies rose, particularly medium-sized firms, among which most Polish exporters can be found. In recent months these shares have plunged by 60-70 percent due to the appreciation of the złoty, but some signs of a reversal sent those stocks soaring. Cersanit, Grajewo and Decora were top picks among them.

It looks like exporters' stocks will outperform the overall market in the coming weeks, but I'm worried about large caps, which probably will test their July lows again soon.

Tomasz Jerzyk, technical analyst DM BZ WBK SA