2022-03-07 09:10, akt.2022-03-07 14:11
publication
2022-03-07 09:10
update
2022-03-07 14:11
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The second part of the session brings a change in sentiment and the banking sector is making up for losses, as well as further strong increases in raw materials companies. European core markets behave similarly.
In the afternoon the indices started to recover due to strongly rising commodity companies and weakening supply in the banking sector. After 2:10 p.m. WIG20 was already in the black, gaining 0.8 percent. The WIG was 0.1 percent higher. mWIG40 was losing 1.1 percent, while sWIG80 was 1.8 percent lower. – mainly due to Ukrainian companies. The turnover has already exceeded PLN 2.39 billion – for the seventh time in a row the barrier of PLN 2 billion was broken, and there were less than 3 hours left to the end of the session.
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In the WIG20 index, Allegro was the most lowered (-9.8%), which set new historical lows at the level of PLN 23.51 per share during trading. The largest banks continued to decline, but the supply weakened significantly. The sell-off of PKO BP was 5.5 percent, and Santander fell by 2.3 percent.
Pekao, which lost around 9% in the morning, was up 4%. Likewise, PZU began to gain around 2.5 percent.
With 6 percent the decline in LPP shares (0.2 percent), which informed that it had decided to suspend operating activities in Russia. LPP wants to stop the development of its brands in Russia and the delivery of commercial goods to Russia.
Raw material companies grew the most. KGHM shares by 3.8%, and PGNiG by 6.8%, PKN Orlen and Lotos increased by around 4.5%. Energy companies were also higher. As a result of PGNiG’s increases and PKO BP’s decreases, the largest company in terms of capitalization in WIG20 was PGNiG, not a banking giant. Last week, we signaled the possibility of a change in the leadership position in terms of capitalization. At a price of over PLN 7.30 per share, PGNiG is valued at over PLN 42 billion, while PKO BP has a capitalization slightly below this threshold, amounting to approximately PLN 41.9 billion.
“The stocks of many commodity companies are rising due to higher commodity prices, although investors should also analyze the companies’ exposure to Russia and their degree of dependence on macro growth” – says Ulrich Urbahn, head of strategy and research on many assets at Berenberg, quoted in a PAP press release.
President Joe Biden’s Administration is considering a law banning the import of Russian crude oil and energy products. In order to secure the supply on the market, talks are underway with Iran and Venezuela about the possible lifting of some of the sanctions imposed on these countries by the US.
The stocks of the vast majority of medium and smaller companies were also below the line. In mWIG, they attracted attention, overestimated by 17%. the values of the Ukrainian Kernel. The following positions were taken by cheaper Asbis (-8.6%) and Amica (-6.7%). The huge sell-offs of banks from the basket stopped, and some began to gain: Millennium (-0.6%), mBank (0.2%), Alior (3.4%). Energy Enea gained the most (10 percent).
Bogdanka (15%) benefited the most from among sWIG80 companies. The companies from the WIG Ukraine index fell the most (-14.6%). IMCompany fell by 18 percent.
The sell-off of shares on the Warsaw Stock Exchange is in line with global trends. Stock markets in Asia fell 0.4 percent today. in Shanghai (SSE B-Share index) by -1 percent. in Singapore at almost -3 percent. in Tokyo and almost -4 percent. in Hong Kong.
Sentiment began to improve on the core European markets, where the DAX was losing only 1.3%, the CAC40 was giving up 1.2%, and the Spanish IBEX35 was down 0.9%. and the Italian FTSE MIB was down 0.4 percent. In the morning, declines in these indices amounted to approx. 4%.
Analysts point out that European stock markets are “going crazy” as the Russian invasion of Ukraine has deepened fears about the persistence of high inflation in the euro area, and investors are getting ready for even greater volatility in the markets, PAP notes.
“It is difficult to see any factors for the increases in the stock markets at the moment in the context of the continued escalation of the conflict in Ukraine” – says Michael Hewson, chief market analyst at CMC Markets UK, quoted by PAP.
KK / MKu
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