WIG hits record high
The broad index, the WIG, also hit an all time record, as well as the WIG20 index price calculated in euro. Turnover was the highest since the bull market caused by high-tech speculation in the year 2000, and reached zł.4 billion. The historical WIG20 record is 2,462 points and is the next target for the bulls. Stocks were bought mainly by foreign investors, although the złoty remained stable-below zł.4 on the EUR/PLN cross. Profit-taking took place in the bond market. Investors shifted funds from the debt to the stock market, which seems to be offering much better short-term prospects.
The almost five-percent jump in stock prices was caused by very good results from top index members TPSA, Bank PKO BP and Agora. KGHM, copper producer and owner of the telephone network Dialog, was also among the heaviest gainers. The Q4 net profit was in line with expectations and was zł.172 million. The company CEO said that although the profits for the whole of 2004 tripled to zł.1.39 billion, they could be zł.1 billion higher if the company decided not to hedge currency and copper price exposure. KGHM shares rose more than 10 percent. An all-time record was beaten by PKN Orlen, which is the biggest member of WIG20 with an almost 15 percent share. Quite heavy profit taking took place just below the level of zł.50-45 percent higher than in January.
The strong złoty and high oil prices hit Debica, as its Q4 profit fell to zł.0.6 million, its lowest value since 2000. Debica shares fell more than 10 percent, hitting a two-year low.
Support came from a strong Hungarian BUX index and inflation figures for January came in at four percent year on year. This lower than expected CPI gives more hope for a quicker interest-rate cut this year. The Monetary Policy Council meeting planned for the coming week will be closely watched as the easing of the monetary bias from restrictive to neutral is expected. The primary Polish interest rate, currently 6.5 percent, is expected to fall this year, thus further helping stocks.
Adam Łaganowski,
Warsaw Investment Group (WGI)
The almost five-percent jump in stock prices was caused by very good results from top index members TPSA, Bank PKO BP and Agora. KGHM, copper producer and owner of the telephone network Dialog, was also among the heaviest gainers. The Q4 net profit was in line with expectations and was zł.172 million. The company CEO said that although the profits for the whole of 2004 tripled to zł.1.39 billion, they could be zł.1 billion higher if the company decided not to hedge currency and copper price exposure. KGHM shares rose more than 10 percent. An all-time record was beaten by PKN Orlen, which is the biggest member of WIG20 with an almost 15 percent share. Quite heavy profit taking took place just below the level of zł.50-45 percent higher than in January.
The strong złoty and high oil prices hit Debica, as its Q4 profit fell to zł.0.6 million, its lowest value since 2000. Debica shares fell more than 10 percent, hitting a two-year low.
Support came from a strong Hungarian BUX index and inflation figures for January came in at four percent year on year. This lower than expected CPI gives more hope for a quicker interest-rate cut this year. The Monetary Policy Council meeting planned for the coming week will be closely watched as the easing of the monetary bias from restrictive to neutral is expected. The primary Polish interest rate, currently 6.5 percent, is expected to fall this year, thus further helping stocks.
Adam Łaganowski,
Warsaw Investment Group (WGI)
