Blood on the Warsaw Stock Exchange. The monsoon from Japan took away Polish shares

Monday’s session on the WSE started with a sharp decline. WIG20 fell more than 4%, reacting to the stock market crash in Japan and the growing fear of a recession in the United States. The second half of the session brought no progress.

After a strong decline at the opening of the Warsaw Stock Exchange, the downward trend continues in the second half of the session. At 1:30 PM WIG20 was down 3.95%. The index of the largest WSE companies fell below 2,250 points, ie the level last seen 6 months ago. Blood can also be seen throughout the vast market. MWIG40 fell by 1:30 pm 4.68% and SWIG80 lost 4.89%. The WIG broad market index fell 4.17% during this period.

At the very beginning of Monday’s session, after 5 minutes of trading, WIG20 fell by 4.3%. On Friday, the WSE blue chip index lost almost 1.5%, and on Thursday 1.9%. We are already dealing with a regular correction of the bull market, or even the beginning of a bear market. The WIG20 is already 13.34% off its May high. In American terms, it is still a correction, not a bear market (ie at least -20% from the peak).

The Warsaw Stock Exchange’s reaction is consistent with what happened on Asian markets overnight. Tokyo’s exchange rate fell to tala when the Nikkei225 fell about 20% in a few days. Other important stock exchanges in the Far East also fell sharply. And it all started with Friday’s decline on Wall Street, where investors feared a possible recession in the US.

This situation appeared later Friday data from the US labor market, which showed the weakest employment growth in nearly four years and an unexpected increase in the unemployment rate. JPMorgan analysts see a 50% chance of a recession in America. At the same time, experts from Goldman Sachs increased their assessment of the probability of a recession from 15% to 25%.

Our stock exchange is not alone in its decline. The session in Frankfurt started with a discount of more than 2% in DAX. Then, the Paris CAC40 lost 2.4% and the London FTSE100 fell 2.3%. The stock exchange in Turkey recorded a decline of almost 7%. American index futures also indicate that shares will decline further on Wall Street. In the morning, S&P500 futures fell 2.7% and Nasdaq futures by 4.9%.

In the evening, the situation on European stock exchanges did not improve. Just before 2:00pm the German DAX fell almost 3%, the French CAC40 lost 2.34% and the British DAX fell 2.87%. However, a slight rebound was seen in futures contracts for the American indices S&P500 and Nasdaq, which lost around 2:00 pm with 1.65% and 2.17%, respectively.

Just like at the start of Monday’s session, all 20 blue chips were declining in the afternoon. Approximately. hour. At 13:50 the shares of Cyfrowy Polsat (-5.87%), KGHM (-5.40%), JSW (-5.06%) and Kruk (-5.02%) fell the most. The “leader” was PZU shares, which went down by 2.57%.

Not one company was growing in the entire mWIG 40 index. At 1:50 pm Comarch shares lost the least (-0.93%). The biggest losers were shareholders GreenX Metals (-8.74%) and Ryvu Therapeutics (-8.71%). In the entire sWIG index, only the shares of Instal Kraków remained above the mark (+0.47%). So we are dealing with a very rare case when Almost all of the 140 largest companies listed on the WSE are down.

KK/MM

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