Central banks support the indices

MG
opublikowano: 2008-03-11 19:48

Warsaw (Puls Biznesu) – Yesterday, the Warsaw Stock Exchange, surprised everyone and rose contrary to all other markets. Because US markets ended down yesterday, everybody expected that Warsaw indices would fall today. There was a threat that WIG20 index would fall to 2,800 points.

 

It did not happen, however. Fed said it would lend USD 200bn to financial institutions. In addition, Fed and other central banks increased funds aimed at increasing fluency on the dollar money market. Stock exchanges welcomed the news. Commodities fell thanks to the appreciation of the dollar.

 

WIG20 ended 2.6 percent up at 2,949.43 points. Banks were doing extremely well while commodities were not, except for Petrolinvest oil exploration company which raised nearly 10 percent after a successful share issue which attracted big institutional investors, including Allianz or PZU.