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Sunday, December 3, 2023

WIG20. Fall on the WSE, that’s all that’s left of the post-election increase – comments

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WIG20 ended Friday’s session lower. “Finally, the post-election increase resulted in a weekly increase in WIG20 of 2.75 percent,” said Adam Stańczak, an analyst at the brokerage house Bank Ochrony Środowiska.

WIG20 closed last week below 2,000 points. This limit was crossed on Monday during the first session after the parliamentary elections. On Tuesday, WIG20 ended trading even above 2,100 points, but since Wednesday we have seen a correction on the Warsaw Stock Exchange (GPW).

“We started Monday on a very strong note resulting from the results of the parliamentary elections in our country. Never before has the stock exchange reacted to the election results with such an increase in the WIG20 index (over 5% on Monday). On Tuesday, the increase continued, but it was already clear that demand fuel is limited (the turnover gradually dropped during the day, which on Monday was really high for our stock exchange). From Wednesday, the declines returned with increasingly lower turnover. Hence, the last three trading days are down days. A crazy week,” he summed up in a comment. Marcin Mierzwa, analyst at stooq.pl.

Declines on the WSE

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WIG20 ended Friday’s trading with a decline of 1.10%. up to 2028.92 points WIG20 is one of the most important and prestigious indexes of the Warsaw Stock Exchange. The index includes quotations of the 20 largest companies on the Warsaw Stock Exchange.

WIG20 index in the last five daysstooq.pl

WIG, which includes all companies listed on the main market of the WSE, fell by 1.15%. up to 68,361.11 points

WIG index in the last five daysstooq.pl

Among the largest listed companies, the leaders of Friday’s discounts were: Pepco (-8.60%), Kruk (-2.8%), mBank (-2.42%), Asseco Poland (-2.43%) and Pekao (-2.06). Other WIG20 banks also declined. Shares of Santander Bank Polska fell by 1.26 percent, and PKO BP securities were depreciated by 1.41 percent. Alior Bank lost relatively little, 0.19%.

Shares of banks classified as medium-sized companies also fell. ING Bank Śląski recorded a decline by 1.70 percent, and Bank Millennium by 0.43 percent.

Bank rates have been falling since Tuesday, with the largest banks losing the most. Over the last three days, PKO BP shares decreased by 7.24 percent, and Pekao shares by 8.88 percent. Despite this, companies from this sector are still trading above the levels from a week ago.

On Friday, the prices of companies from the energy sector performed better than in previous sessions. After over 6 percent declines on Thursday, at the last session this week, PGE’s shares dropped by 0.43%, and Enei’s fell by 0.14%. Tauron’s securities ended the day in positive territory, growing by 1.76%.

“On Friday, there was virtually no sign of finding your path”

“The session was, to the greatest extent, a return to the WSE’s correlation with the world. On Friday, there was virtually no trace of finding its path based on the variables that dominated the first sessions of the week. The market was forced to abandon the valuation of the political change in Poland by declines on the base stock exchanges, where the German DAX dropped to new lows of the August-October depreciation,” explained Adam Stańczak, an analyst at the BOŚ brokerage house.

“Finally, the post-election increase resulted in a weekly increase in WIG20 of 2.75 percent, but it is enough to look at the weekly chart of the index to see the scale of the bulls’ defeat in the form of a withdrawal of about 130 points from the maximum movement drawn during the Tuesday session,” the analyst added. WIG also remained positive. In the case of this index, the weekly increase was 1.94%.

In Stańczak’s opinion, “it should be assumed that the return of correlation between the Warsaw market and the core markets will be strengthened by focusing the world’s attention on the quarterly reports of technology giants from the US, which determine the mood in which the season for publishing financial results for the third quarter will end.” “From a broader perspective, the WSE’s return to the ranks may seem dangerous, but it is worth remembering that global markets have just entered a period in which shares should perform better until the turn of December and January. As a result, correlation with the world should be one of the elements that will support demand,” the analyst noted.

Main photo source: Shutterstock

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