WIG20 at its lowest since January 2017, as investors afraid of coronavirus

Warsaw Stock Exchange WIG20 index approached the level of 2,000 points and has the lowest value since January 2017. Analysts indicate that this may be related to increased investor anxiety about the emergence of new outbreaks of Covid-19 coronavirus, including Italy geographically close Poland.

“While the situation in China seems to be stabilizing, recent media reports about new virus outbreaks may increase investors' fears. The media reported among others about new cases in South Korea and Iran, but from the point of view of European investors, Italy may be the most important,” Michał Krajczewski, the head of the BM BNP Paribas investment consulting team, said.
 
In his opinion, in addition to new illness in Italy, investors may also pay attention to the fact that Northern Italy, including Lombardy, are among the most economically developed regions of the country, and further spread of the virus may also lead to negative effects on the Italian economy and others in the EU.

(PAP)