Warsaw (Puls Biznesu) – WIG20 index fell 2.6 percent to 1844.02 points on Tuesday.
The Budapest bourse rose in the morning but it ended down 1.3 percent. In the last five days, BUX added 6.5 percent so the falls could be expected. The foreign investors, however, did not turn to Poland, hence the decrease on the Warsaw bourse GPW. Meanwhile, investors take the chance to buy shares of Polish blue chips cheaply. How long it is going to go on – no one knows. The last time WIG20 lost 40 percent was on October 12th. After two days of falls the market started growing.
Today, the index fell mainly due to PKO BP and Pekao banks. The first one shed 3.6 percent after ING published ‘sell’ recommendation with a target price of PLN 21.8 (EUR 5.3) while on Monday the shares cost PLN 27.4, and today PLN 26. PKN Orlen fuel giant and KGHM copper producer did not lose as much as the index after the news that the supervisory board of Polkomtel telecom (both blue chips are its shareholders) will approve of the plan to list the company on January 28th.
Computerland and Prokom IT companies did better than the market although they will not realise a contract worth USD 200 m because it was removed from offset contracts. Prokom was helped by the statement of Ryszard Krauze, its CEO and main shareholder that 2004 was ended with consolidated income. After nine months, the group had PLN 11.4 m of net loss.
(PLN 1 = EUR 0.245)
Poland/Stock market report