Innocent ones hit hard on stock market

MG
opublikowano: 2008-01-11 11:46

Warsaw (Puls Biznesu) - Warsaw Stock Exchange mWIG40 index dives. Companies with good fundamentals go down along with the index. MCI Management lost 24.5%, IDM SA shed 22.1%, Bank Millennium dived 20.7%, and Bank Handlowy ended 17.4% down while LPP fell 13.8%. This is the slaughter of the innocent. Investors lost their senses in panic. The most shocking thing is that among this year’s worst performers are companies with healthy fundamentals and good perspectives.

The mWIG40 index has lost over 12 percent in January for the worst result in the 10-year-long history of the index. On Wednesday, it had shed 4.5 percent, on Thursday 4.1 percent. After seven days of this year's trading , very few companies are trading higher. Many of mid-sized companies dive at double-digit rate. Investors turn back against mid-caps although their fourth quarter results should be quite good.

“High economic growth is endangered. If economy slows down, small and mid-sized enterprises will be the first ones to suffer. This may be what investors are afraid of”, Miroslaw Saj, DnB Nord analyst said.

A year ago, after first six days of trading, mid-caps were also losing but the decrease of the index was the lowest. mWIG40 became the weakest index in November when it shed all the previous gains as the first one.