The Warsaw Stock Exchange Index (WIG) ended Monday’s session at the highest level in history. The index rose by 1.40 percent to 72,170.41 points. After an increase of 1.49 percent to 2,416.38 points, the WIG20 closed the quotation at the highest level since February 2018 – the scale of the increase was the largest since July 7. The mWIG40 and sWIG80 indices also rose and set 14-year records.
– The WSE has had a good session – the indices set new highs in upward trends, and at the same time the decline in activity resulting from the lack of a session in the US was not large. The quotations rose on the basis of positive sentiment in the Asian markets, where the session ended with gains. On Monday, the WSE was one of the stronger markets in Europe, Konrad Ryczko told PAP Biznes.
Records on the WSE
Demand prevailed on the WSE throughout Monday’s session. The WIG20, after opening at 2,379 points, almost equal to the close of Friday’s session, moved up from the beginning. The index of large companies was gaining throughout the session, with a break for two consolidations – one, longer in the morning and the other, shorter by approx. 13-15. Ultimately, after an increase by 1.49 percent. up to 2,416.38 points The WIG20 closed at the daily high, recording the highest value at the end of the session since February 2018. It was the best session in two months for the index of large companies.
On Monday, the WIG index, after an increase of 1.40 percent. up to 72 170.41 points ended the session at a historic high. A week ago index for the first time in history, it exceeded the level of 70 thousand. points and closed at 70,526.66 points, which was the highest close in the index’s 30-year existence.
mWIG40 and sWIG80 went up by 1.55 percent, respectively. and 0.60 percent. to 5,315.39 points and 21,251.75 points
The break in the series of records of the main WSE indices lasted one session – Monday’s increases fully compensated for the slight declines of the main indices at the Friday session. Since the beginning of the year, the WIG20 has gained 21.8%, the WIG has increased by 24.8%, the mWIG40 has increased by 33.7%, and the sWIG80 has increased by 32.0% during this period.
The increases on the WSE were supported by increases both on the Asian stock exchanges and on most European markets. Throughout much of the session, the WIG20 mimicked the movements of the German DAX. Index beyond our western border at approx. 17 was 1 percent. positive. Stock exchanges in the US were closed on Monday due to Labor Day.
– The fact that the WIG20 has been performing better than other indices lately suggests that foreign capital is flowing into the WSE. Maybe we are not the flagship index among emerging markets, but some investors looking for higher rates of return may have noticed the Warsaw market. The financial and raw material structure of WIG20 is currently in our favor. Therefore, the continuation of the upward trend is the most likely scenario for which the most important risk factor is the behavior of foreign markets. The German DAX has not been improving records for some time, but only remains near the top. In the USA, the dynamics of growth is also not high – assessed Ryczko.
DM BOŚ analyst indicated that declines on global markets may be driven by one of the three main risk factors: actions of central banks (led by the Fed), data from the US labor market or inflation data.
Growth of WIG20 index companies
The turnover in shares on the WSE amounted to over PLN 780 million, of which PLN 540 million was attributable to WIG20 companies. The leader in this respect was PKO BP (PLN 93 million), ahead of JSW (PLN 74 million) and PZU (PLN 72 million).
The leader of the WIG20 increases on Monday was JSW shares, the quotations of which rose 7.2%. up to PLN 48.87. It was the 9th consecutive upward session for JSW, and the closing share price was the highest in 2 years. Quotations are pushing up sharply rising coking coal prices in the global markets – in China, the January coking coal contracts rose by more than 5 percent.
Apart from JSW, four other WIG20 companies recorded at least an annual high. This group included three banks – PKO BP (+2.5% to PLN 43.90), Pekao (+1.8% to PLN 109.9) and Santander BP (+0.46% to PLN 306). PLN 4) and PZU (+1.9 percent to PLN 42.65). The increase in banks’ quotations was not stopped by the Monday interview of the NBP president for PAP Biznes, in which Adam Glapiński described the withdrawal from the accommodative monetary policy as currently very risky.
Dino shares also rose on Monday (+3.3%), which closed the session at PLN 339, which was PLN 1 below the historical high in August.
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