The second week of strong gains. WIG20 in the embrace of a technical boom

In trading on Friday, the WSE indices returned to gain in the style of a developed bull market after a day off. This is the second week of decisive increases on the WSE, which have put the WIG20 in the grip of a technical boom.

Occurs when the index bounces at least 20 percent. from the bottom of the bear market. On Friday, the WIG20 was up close to 1,601.27 points, or 19.7%. above the level of October 13, when it marked the low point of the multi-month bear market and became the worst index in the world.

In November, the Chinese Hang Seng (-30.9%), the American Nasdaq (-33%) and the Vietnamese VN30 (-34.8%) already have a worse annual rate of return. During the session, the WIG20 reached up to 1612 points, equivalent to a rebound of 20.5%. from the hole.

Eventually, the WIG20 gained 2.68%. with a WIG increase of 2.72% up to 52 300.2 points, the mWIG40 was traded 3.64%. higher and closed the session at 3,937.51 points, and the sWIG80 gained 1.73%. up to 16 913.83 points Turnover exceeded PLN 1.36 billion, of which 1.13 billion related to WIG20.

In the balance of the week, WIG20 referred to the previous one and gained 6.14%. A week earlier it was up to 6.88 percent. – the maximum since November 2020 This week, the WIG increased by 5.56% and the mWIG40 and sWIG80 gained 5.08% respectively. and 3.76 percent

The recent thaw in equity markets was driven mainly by expectations of a Fed pivot. This was temporarily shelved by the markets to focus on another pivot, this time by the Chinese authorities, on the “zero covid” policy in the Middle Kingdom. Maciej Kalwasiński wrote about the questionable nature of these relationships.

Investors, on the other hand, want hikes and look for any positive information, even unconfirmed, and ignoring hard economic data, such as change in employment in the United States higher than expected.

Analysts are divided on the further path of interest rates. in the United States, he reported during the PAP session, citing two extreme views.

“The only way central banks can contain inflation is through tighter financial conditions and slower GDP growth. Fed Chairman J. Powell explained that raising interest rates excessively could be an option. less expensive in the long run than doing too little, “Barclays analysts said.

“We believe the Fed is much closer to stopping rate hikes than the market is considering and much closer than it is trying to convey. We may see a little more volatility in the near term, but I think there is. real opportunities in the next 12 months. Rising share prices, “said Isaac Poole, investment director at Oreana Financial Services, who expects the US central bank to finish the hikes in December or January.

In any case, commodities have had a strong rebound, supporting the larger WIG20 companies, and the observed appreciation of the zloty encouraged to a bolder purchase of Polish shares. Even more noticeable gains after the start of trading on Wall Street allowed the WIG20 bulls to fight for the highest close since Aug 26.

At the sectoral level, the mining industry (10.51%), but also chemicals (4.55%), automotive (7.98%), fuels (3.84%) and fuels stood out on Friday. energy (4.27%). In total, 13 out of 14 sector indices rose, while pharmaceuticals alone recorded a decline (-0.29%).

In WIG20, KGHM’s share price contributed the most, gaining 11.68%. with an increase in copper prices of over 6%. JSW’s price was also 4.92% higher, following the rise in coking coal contract prices and the dollar rebate.

Reseller courses performed very well, after the great results of Dino increased by 7.21 percent. The report (including the announcement of spending cuts) shown by CCC supported the share price increase of 5.21 percent.. Although Allegro’s stock market rose over the course of the day, the ecommerce platform lost 0.34% after the correction, and information has appeared on the market about an increase in the Allegro Smart package.

The price of PGE was the highest in nearly a month (6.73%) and with the most expensive crude, the price of PKN Orlen (5.07%) was the highest since August. At closing, you had to pay PLN 63 for the shares. On Thursday, the company announced that it would postpone the publication of the report for the third quarter to November 29.

Only the largest state-controlled banks lost in the demand market. PKO BP was 0.97% lower and Pekao 1.66% lower. The group of companies in decline is completed by Asseco (-0.49 per cent) and the aforementioned Allegro. From Monday, the WIG20 portfolio will be supplemented with Kruk shares.

The most traded on blue chips were the shares of PKN Orlen (PLN 211.6 million), KGHM (196 million), Dino (128 million), Allegro (120 million) and Pekao (108 million). The remaining companies did not exceed the PLN 100 million mark.

In the second line, Intercars (10.85%) and Develia (9.83%) benefited the most, but Bogdanka, ING, Grupa Azoty and Dom Development were also characterized by strong prices. All listed companies gained over 7%. Only the prices of four companies decreased, including the aforementioned Kruk (-5.09%).

Stalprofil price stood out on the broad market (8.89%), growing after a court ruling in favor of the company. In the basket of development companies, Lokum’s price gained significantly (13.57%). Gaming Dragon gained 12.17%.

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