—For more than a month, the bears on the WSE have been absolutely ruled by the market bears, which bring the Warsaw indices lower and lower. On Thursday, sales intensified, setting new lows. The second part of the session, however, brings a timid demand launch.
After 3 p.m. the scale of the sell-off decreased, mainly due to lower supply at banks. The WIG20 was losing 1.7 percent, compared to 3 percent. in the first part of the session. WIG was lower by 1.8 percent. mWIG40 decreased by 1.9%, sWIG80 was 2.7%. under the dash. The drops were wide and covered the entire Warsaw market. Almost all (13 out of 14) industry indices were below the line with the mining sector (-4.2%), games (-4.1%) and food industry (-5.1 percent) leading the discount.
The sale has weakened slightly banks (-1.2 percent). WIG20 from the beginning of the year is nearly 26 percent. below, that is, a few points abroad of a contracted bear market. For the WIG, it is approx. 24%. discount. WIG20 and WIG have the lowest quotations since November 2020. Trade focuses mainly on large companies, generating over 85 percent. stock exchange trading.
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The session starts with declines in all WIG20 components, with the banking sector at the forefront. Lotos fell the most, but after a few hours of trading, the decline was around 1.6%. The company from Gdańsk has announced that it will not pay its shareholders a dividend from last year’s record profit. Banks are constantly discounting government plans to help borrowers; and new bond ideas and forcing a deposit hike. The initial sell-off slightly weakened two hours before the end of the session. As a result, after 15.00 mBank was losing 2.5%, Pekao 3.2%, Santander 0.8% and PKO BP 1.24%. PKO BP’s shareholders’ meeting on Thursday decided that the bank will allocate PLN 2.287bn for dividends, or PLN 1.83 gross per share. The date of establishing the right to dividend is August 4, and the date of its payment is August 23, 2022. PKO BP shareholders did not vote during the general meeting on the authorization of the management board to acquire up to 125 million of its own shares
The leaders of the sale in the afternoon were CD Projekt’s prices (-5%), being close to historical lows, and CCC (-6.6%), valued at about PLN 42 per share.
In blue chips, most companies (18 out of 20) lost about 1.5 percent. and more. The disastrous sentiment is due to the negative impact of yesterday’s sell-off on Wall Street. In the absence of significant economic data, investors may pay attention to the reading of producer inflation (PPI) in the USwhich exceeded the assumed forecasts.
The world in a snare
PLN 28.85
PLN 44.99
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Vova, Volodya, Vladimir
PLN 49.49
PLN 64.99
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Over 3.3 percent Cyfrowy Polsat’s share price has fallen, which showed the results for the first quarter. About 5 percent KGHM shares fell (-4.9%) after yesterday’s correction rebound. Today the company will publish its results for the first quarter, when copper prices were still trading around their historic highs. In addition, there was already an exemption from the copper tax. According to the data of the Polish Financial Supervision Authority. Marshall Wace, bought back some of the shares “short sold”, which reduced his position in the register from 0.62 to 0.58 percent. net shares.
LPP was doing better than the rest of the companies (-0.2%), which was the growth leader in the previous session. The PGE exchange rate (-0.4%) performed relatively better, showing a willingness to rebound after Wednesday’s declines in the entire sector. PGE released estimates for Q1, which, according to preliminary information, provide for approximately PLN 1,022m of net profit attributable to shareholders of the parent company.
In this phase of the session, only the prices of PGNiG shares were rising (0.7%). The company announced that it is closer to the opening of the Baltic Pipe. The WIG20 ended with a decline in 16 of the last 17 sessions. It seems that Thursday will not bring any change in moods.
After 3 p.m. in mWIG40, only 4 entities resisted the drops. These were DomDev, Biomed, Handlowy and LiveChat. Famur (-7%) and MoBruk (-8.9%) fell sharply, which showed the results for the first quarter and a decrease in profit by over 32%.
CI Games stands out in the sWIG80 again, with its price increasing by approx. 15%. After the end of yesterday’s session, there were two large package deals on the company’s shares, in which over 18 million shares changed the owner at a price of PLN 2 per share.
The strongest decline in sWIG80 was PCF (-8.7%), Shoper (-7. *%) and Astarta (-7.2%).
“The WIG is in an extreme overshoot point compared to European markets. A strong rebound from the current levels seems justified in any scenario, with the exception of the uninterrupted continuation of the US stock slump, “DI Xelion’s director of the investment analysis and advisory team, Kamil Cisowski, wrote in the morning’s comment.
The Polish zloty is not helping, as it is losing versus the dollar, translating into a sell-off on the WSE.
The zloty is cracking against the dollar, so the WIG20 is breaking. pic.twitter.com/eM8UPLSs43
— blogi.bossa.pl (@BlogiBossaPL) May 12, 2022
Indices in Europe are aiming to pass the 5th consecutive week of discounts in the face of many threats to the markets, including the economic effects of the ongoing war with Russia in Ukraine, aggressive tightening of credit conditions by central banks, especially the US Federal Reserve, and rising inflation. which beats the highs of many years.
The European Central Bank is getting closer to raising interest rates. On Thursday, ECB Governing Council member Peter Kazimir signaled his support for an increase in the cost of credit in the euro zone in July, joining a growing group of decision-makers from the ECB who are in favor of raising the cost of money in the euro zone, PAP informs.
The DAX was losing 1.9% after four hours of trading, the CAC40 was 2.1%. below the mark, the FTSE100 was discounted by more than 2 percent, and the Italian FTSE MIB by 1.6 percent. US indices lost 1.2 percent after the opening of the cash market. in the case of the S & P500, in the case of the Nasdaq it was 1.9 and 1.1 percent. in relation to DJI, however, after 20 minutes, they began to catch up and move away from the set minimums, which contributed to a bolder attitude of bulls also in Warsaw.
“We are now at a very pessimistic point and we can expect even greater outflows of capital from the stock markets if the stock markets surrender” – says Diego Fernandez, investment director at A&G Banca Privada, quoted by PAP.
MKu
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