Traders predict continuing market buoyancy as pension funds buy up stock

Heavy buying of Polish blue chips by institutional investors, mainly pension funds, boosted the Warsaw bourse yesterday, and traders said further gains m ight follow in the days ahead. The key WIG 20 index soared 5.6% to close at 1,285.2 points, almost 30% higher than the three-year low hit in October. Tu rnover on the day stood at a hefty zl.356.5 million. Traders said the index might continue its rise in the next session, reaching some 1,300 points, esp ecially if the warm world sentiment does not worsen. "To some extent the sur ge is a result of increased buying by pension funds," said a manager at a le ading local pension fund. "The market might be hoping for a rate cut in Febr uary or for an agreement between the government and the Monetary Policy Coun cil," said a manager at another pension fund. Shares in Telekomunikacja Pols ka (TPSA) surged 10.7% to zl.15.5, and shares in PKN Orlen rose 8.1% to zl.2 0.8 each. Copper and telecoms conglomerate KGHM, another favorite of local p ension funds, which are the biggest players on the Warsaw bourse, closed up 8.8% at zl.14.3 per share. (Reuters)