Bad news depresses bourse
Nothing good could have been expected from the stock market yesterday in view of the bad news that came before the doors opened.
The first was from Alan Greenspan who on reducing interest rates in the USA promised that further cuts were to come and very strongly hinted that all was not well in the economy over the other side of the Atlantic. Traders had all night to consider the consequences of this move but the second piece of bad tidings came as they were walking through the stock market door. The government announced that it had reached almost 90 percent of the budget deficit planned for the year by the end of April.
In these circumstances it would have come as no surprise that trade was thin at PLN213.5m turnover and that the dominant instruction was sell. The WIG20 dropped to 1,379.6 points and the WIG index by 1.4 percent to 14,854.7. Major companies like power and telecommunications group Elektrim, oil concern PKN Orlen and copper miner KPHM all noted the third day of falls. On the whole only 19 companies noted an improvement in value whilst 82 headed on down.