Minor changes after the election. WSE in holiday mode

2020-06-29 17:45

publication
2020-06-29 17:45

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The results of the first round of presidential elections did not bring a clear reaction to the Polish stock exchange. The WSE has been in holiday mode for several days and the Monday session confirmed the slowdown in the market.

0.57 percent WIG20 went up. Theoretically, the Monday session of the Warsaw Stock Exchange could be written “plus”, but the result was not clear. First of all, DAX or S & P500 gained more than 1% today, secondly, the result of the Warsaw session alone was also not clear. WIG (+ 0.5%) and mWIG40 (+0.6%) gained, but lost the wider sWIG80 (-0.25%). WIG20 itself was also often below the line during the day

The turnover again attracted attention, as it reached barely PLN 712 million on the broad market. This is the fourth session in a row with a turnover below PLN 1 billion, while earlier in June this level was not a problem. The interest of the WSE clearly dropped at the beginning of the holiday period.

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From the Polish point of view, the most important event was the announcement of the results of the first round of elections. However, this one did not bring much surprises and, as we predicted last week’s analysis, it did not significantly affect the WSE. However, the campaign before the second round can provide investors with new impulses, just as it was five years ago. It is therefore worth keeping your finger on the pulse, the end of the first round does not mean the end of the festival of promises.

The composition of WIG20 noted the increases in Lotos, which with a result of +4.2 percent. proved to be the session leader among the largest companies. This is probably a reaction to Reuters unofficial information that PKN Orlen will receive from the European Commission a green light regarding the takeover of Lotos. Orlen lost 0.2 percent

Energy was another interesting topic among large companies. After strong increases from the turn of May and June, the prices of companies in the sector clearly slowed down in recent days. PGE lost 4.3 percent, while Tauron went down 5.6 percent and these were the two worst results in WIG20. The problem with energy companies is that, in fact, no one outside the United Right camp knows what the transformation of the Polish mining and energy sector will look like. This is confirmed by, among others suspended brokerage house recommendations for companies in the sector.

In the broad market, 11bit studios (-10.6%) were on the decline. The company conducted a meeting with investors, on which it informed, among others about plans to spend PLN 60 million on own games and a publishing contract for the game “Ava”. However, the key information for investors was probably the delay in work on “Project 8”.

On the green side, companies from the Leszek Czarnecki stables stood out. Idea, Getin and Getin Noble recorded over 25% increases. Subject for speculation provided, among others information that Idea Bank will sell shares in Idea Money. However, Idea Bank itself will still have problems meeting the KNF capital requirements.

Adam Torchała

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