WIG20 declines. Red of Orlen and Biomed

2020-08-18 17:28, akt.2020-08-18 18:09

publication
2020-08-18 17:28

update
2020-08-18 18:09

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Fuel and energy companies led the declines in WIG20. Small and medium-sized companies fared better, despite the strong declines of Biomed.

A decrease of 1.2 percent. ended Tuesday’s WIG20 session, which was one of the weakest results among European indices. Other main WSE indices performed better: mWIG40 gained 0.3% and sWIG80 increased by 0.1%. The weak stance of blue chips, however, prevailed in the WIG, which lost 0.8 percent. The turnover on the broad market reached PLN 1 billion.

Orlen had the largest share in the decline in WIG20, losing as much as 5.2 percent. Another oil concern – Lotos (-2.8%) also fared poorly, and the energy company PGE recorded similar declines. The index was also negatively affected by bank sell-offs, especially declines in Pekao (-2.7%) and PKO BP (-1.2%).

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Only five WIG20 companies are on the green side. Cosmetic increases were recorded by KGHM, Santander and PGNiG. 0.7 percent Dino went up, thus outperforming Orlen in terms of capitalization. The growth leader turned out to be Tauron, which grew by 2 percent.

The securities of Asseco (+10%) and Eurocash (+8%) stood out positively in the second line. The Asseco Poland Group estimates the parent company’s net profit in the first half of 2020 at PLN 176.7 million – the company said in a press release. This is above consensus.

On the other side of the market, Biomed saw the strongest move, with its shares discounted by as much as 14.5 percent. The company began producing the first batch of COVID-19 drug from the plasma of convalescents. The drug will undergo clinical trials, which are due to start in approximately 2 months. The standard drug registration procedure takes about 210 days, and the regulations on combating the coronavirus pandemic allow it to be shortened to 150 days.

Meanwhile, Airway Medix continued its steep gains after the company announced before the weekend that it had received from the Federal Drug Administration Approval for sale on the US market of the device under the name Cuffixfor maintenance-free monitoring and optimization of the pressure in the cuff holding the tracheal tube. Yesterday the value of the company doubled, today – after a long stay “on the forks” – shares jumped up by another 61 percent.

However, these were not the strongest increases on the market. Finally, Pyamid Games’ trading has started. The company’s shares remained in balance since their debut and today the operator of the session finally allowed the transaction to be carried out. Pyramid closed the session as much as 424 percent. above the reference price.

Below are the closing and changes of selected European stock indices.

Adam Torchała / PAP

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