Warset withstands investor demands
Supported by a late week upward trend across the board, Warset's first full week of trading met the approval of traders who like the new system's speed and technology.
It didn't take investors long to notice, however, that with a new continuous trading system now open to smaller investors, it sometimes takes multiple transactions to buy the same bloc of shares available via one transaction previously. And that means paying a settlement fee to the National Securities Depository (KDBW) for every transaction, said Marcin Andrzejczuk, a broker with Amerbroker.
"That's the only problem," Andrzejczuk said. "Many investors are not happy about this."
Discussion has already centered on modifying the system.
The all-share WIG index was up 1.24% to 16,773.4 points while the large cap WIG-20 was up 1.47% to 1,677.4 points. Even the downtrodden TechWIG saw 3% gains on the week to 1,335.6 points after a midweek correction.
Recording some of the week's biggest losses, however, were Netia and Optimus, down 8.16% and 7.41%, respectively, to zl. 72 and zl. 112.50 per share. The former, Poland's largest independent telecom company that trades on the Warsaw Stock Exchange (WSE), the NASDAQ, Newex and London stock exchanges saw GDS (global depository shares) being sold off on Thursday. Analysts said it probably resulted from one major investor most likely in the United States dumping Netia. Only 1% of Netia's weekly trade was over the WSE.
But analysts don't see eye-to-eye on Netia's future.
"We are seeing losses lasting until 2003 or longer," said Bob Creamer, a telecoms analyst with Raiffeisen Capital & Investment Polska. He said that Raiffeisen has issued a "neutral" recommendation on Netia with a target price of zl. 75 per share.
But, according to Marcin Sadlej, head of economic research at CDM Pekao Securities: "It's a one-time event. I don't see any lasting consequences."
Analysts said Netia's slightly disappointing earnings results for the third quarter, which showed a net loss of zl. 396 million ($86 million) on the back of zl. 114 million ($24.8 million) in revenue, weren't responsible for the week's losses.
A slowdown in growth could be bad news, however. The company grew 6-7% in the third quarter whereas 10% had been expected.
"On the other hand, we had some good news," Sadlej added. "They'll probably start DLD (domestic long distance) operations from the first of December."
Optimus, it appears, is still reeling from news several weeks ago that ITI Holdings, a strategic investor, plans to divest itself of Optimus' lucrative Onet portal.
Several weeks after the lock-up period ended for employee shares of Telekomunikacja Polska (TPSA), employees have held onto all but about 5% of a combined 210 million shares, Creamer said. TPSA share price was up 6.69% on the week to zl. 25.50. Though initial fears of employee shares flooding the market and diluting share value have passed, Creamer said a possibility still exists that a price drop could see shares getting hawked all at once.
As for market trends in the near term, Andrzejczuk said that volatility of late could hang around. "It depends on the elections in the U.S.A.," he said. "I think in the near future it should go up."
Sadlej said increased demand from international investors is a pat on the back for the WSE. Plus, they're focusing on a mixture of issues and not only IT sector stocks, he said, which is another good sign.
