WIG20 follows global markets
The Dow Jones Industrial hit a year-low and volatility increased in the US and Europe. This also weakened the WIG20, which fell close to this years low.
Technology stocks were heavily hit after PZU, the nation's largest insurance company, declared it would cut IT expenses. The company cooperates with Prokom which fell more than 10 percent to its lowest value since 2002. Q4 results for Prokom were already bad and the information from this week further hit its share price. Softbank, another IT company, was also heavily hit, although it cooperates in a much higher profit margin environment and recently posted more than 100 percent rise in net income and 60 percent in revenues.
The period of posting Q1 2005 results begins this week. Investors are looking at how the weakening złoty, falling interest rates and rising commodity prices influence the condition of companies listed in Warsaw. Much is dependent on the results of banks and KGHM and PKN.
Last week ended in a bid for the fourth mobile telephony operator's license. As expected, all the three current mobile networks submitted their offers, along with Netia, a WIG20 member and Qiana Investments, a new player in the Polishmobile business. The stocks of the current mobile operators - TP SA, KGHM and PKN-fell by varying amounts as a result of the news. There is still much room for competition in the mobile sector in Poland, but a new player in the business would mean further decreases in profit margins.
Adam Łaganowski, Warsaw Investment Group (WGI)
Technology stocks were heavily hit after PZU, the nation's largest insurance company, declared it would cut IT expenses. The company cooperates with Prokom which fell more than 10 percent to its lowest value since 2002. Q4 results for Prokom were already bad and the information from this week further hit its share price. Softbank, another IT company, was also heavily hit, although it cooperates in a much higher profit margin environment and recently posted more than 100 percent rise in net income and 60 percent in revenues.
The period of posting Q1 2005 results begins this week. Investors are looking at how the weakening złoty, falling interest rates and rising commodity prices influence the condition of companies listed in Warsaw. Much is dependent on the results of banks and KGHM and PKN.
Last week ended in a bid for the fourth mobile telephony operator's license. As expected, all the three current mobile networks submitted their offers, along with Netia, a WIG20 member and Qiana Investments, a new player in the Polishmobile business. The stocks of the current mobile operators - TP SA, KGHM and PKN-fell by varying amounts as a result of the news. There is still much room for competition in the mobile sector in Poland, but a new player in the business would mean further decreases in profit margins.
Adam Łaganowski, Warsaw Investment Group (WGI)
