On Wednesday, the Warsaw Stock Exchange found itself in a big hole, and strong declines continued throughout the entire trading period. This can be seen even in the largest companies from the WIG20 index – half of them have been discounted by more than 2 percent.
Immediately after the opening of Wednesday’s quotations, the WIG20 rate began to fall sharply and an hour and a half later the index’s decline was almost 2 percent. The index fell to the level of 2145 points, where it stopped and remained in the range of around 2145-2160 points until the end of the session.
Falls on the Stock Exchange
At the close of the session, the WIG20 index was at 2,142.82 points, down 2.1%. to Tuesday’s close. mWIG40 fell by 1.29 percent. to 5264.9 points, and the sWIG80 dropped by 0.95 percent. up to 21,721.3 points The WIG share price fell by 1.8 percent. and reached the level of 70,814.36 points.
For most of the session, all companies from the WIG20 index fell. Alior performed relatively well, turning positive several times. At the close of the session, the company’s shares traded 0.17 percent. above Tuesday’s close.
Alior Bank published its results for the second quarter of 2023 before the session. The bank announced that the group’s net profit in the second quarter increased to PLN 506.1 million from PLN 216.2 million a year earlier. The profit turned out to be 13 percent. above the expectations of analysts, who forecasted that it would amount to PLN 449 million.
The results of mBank also turned out to be better than analysts’ expectations. The company announced on Wednesday before the session that in the second quarter of this year it showed a net loss of PLN 15.5 million, while a year earlier the bank had a net profit of PLN 229.7 million. The bank’s result turned out to be 38 percent. better than expected by the market, which expected the loss to be higher and amount to PLN 25.1 million.
Despite this, mBank’s share price fell by 1.98% at the close of the session. During the quotations, mBank’s securities fell even by more than 3.5 percent.
Allegro shares have had a failed session. In the middle of Wednesday’s quotations, the price of the online platform began to fall sharply, from about PLN 35.25 to PLN 34.07 at the closing, which means a discount of 4.77 percent. The turnover on Allegro shares amounted to PLN 70.5 million.
A discount of more than 3%. ended the Wednesday session: Kruk, JSW and KGHM, and the shares of Pepco, Cyfrowy Polsat, PZU, Santander and LPP fell by over 2 percent.
By less than 2 percent. securities of mBank and PKN Orlen declined.
US rating and global markets
Quotations on the Warsaw Stock Exchange, as well as on global markets, were affected by Fitch’s downgrade of the long-term IDR rating for USA.
Fitch downgraded the U.S. long-term Issuer Default Rating (IDR) to “AA+” from “AAA” on Tuesday, due to the US government’s growing debt management problems.
Negative sentiment prevails also on world stock exchanges. Around 5:30 p.m., the S&P is down more than 1 percent, and the Nasdaq is down nearly 2 percent.
By more than 1 percent. the prices of the main European indices are also falling
Main photo source: Rafał Guz/PAP