16:25 18 December 2019
WSE to record one of the worst stock market results in 2019
Poland boasts to have one of the strongest economic growths in Europe this year, and at the same time, the Warsaw Stock Exchange records rather disappointing results. The national benchmark, the WIG20 index, is expected to end 2019 with a loss of 6.4%, which is among the weakest stock market results in the world. This is a sharp contrast to the 23% growth of the Stoxx Europe 600 index this year. The year 2020 may be even more difficult because the growth of Poland’s economy is to slow down to 3.4%, which would be the slowest pace in five years.
Polish banks listed on the WSE have suffered so far this year with Bank Millennium, Santander Bank Polska and PKO Bank Polski down 38%, 16%, and 11% respectively.
“The already low valuations of Polish shares will not be a sufficient bait for investors in the coming months,” Kamil Stolarski, an analyst at the Santander Bank Polska brokerage office, told Bloomberg. In his opinion, banks, which account for about 30% in the WIG20 index, are facing increased legal problems with currency mortgages that cannot be quantified.
(Bloomberg)
