Zloty, WSE suffer in the wake of attacks on the US

The zloty lost around 2% of its value and the Warsaw Stock Exchange suffered heavy losses in the final hour of trading yesterday, as foreign investors withdrew from all emerging markets in reaction to the terrorist attacks on New York and Washington. Investors turned to stronger, more reliable currencies such as the Euro and the Japanese Yen, which have gained in value. The main WIG20 index plunged 33 points in the last hour of trading, and ended down 2.8% to 1,115.4, just 5% above its 33-month low set last month. Despite the worldwide panic caused by the airplane attacks on the World Trade Center in New York and the Pentagon, the WSE will open for business as normal today. "We have increased precautions. However, I see no reasons to suspend the functioning of the WSE. On Wednesday the session will continue as usual. The reaction of our investors was rather intense, but I see no reasons to be afraid that Warsaw's stock exchange will crash on Wednesday," said Wieslaw Rozlucki, chief executive of the WSE. However, the attacks may have an impact on businesses and consumers, in the form of more expensive fuel. Oil prices in London shot up by 13% yesterday evening. "We cannot rule out that the terrorist attack on the USA will lead to an increase of prices on the markets and a destabilized situation on the world's and local oil markets. I cannot rule out the possibility that we might have to pay zl.4 per liter of gas in our country. Although Polish refineries buy cheaper Russian oil, its price is linked with the world price of Brent crude," Wojciech Zurawik, CEO of Rafineria Gdanska, commented. (Rzeczpospolita, pp. B6, A7; Gazeta Wyborcza, p.13; Puls Biznesu, pp. 13, 37; Reuters) A.K.