The Warsaw stock market rebounded on Friday despite the fact that investors were no doubt none too pleased about the choice of Grzegorz Kołodko as the new finance minister following the departure of Marek Belka.
Kołodko was previously the SLD Finance Minister from 1994 –1997. Whereas he is noted for bringing down the public sector deficit down to its lowest point ever at 2.6 percent of GDP, recent comments on increasing the public sector borrowing requirement and devaluing PLN to supposedly increase growth is not likely to improve the investment environment.
On Friday the WIG20 index gained 2.1 percent to take it back over the 1,200 mark to 1,207 points. The WIG gained 1.4 percent to take it to 14,026 points. Turnover was low and it could be that investors have already allowed for this unpopular choice.
Frankfurt and Paris gained well over three percent and London gained just under two percent. Warsaw’s losses last week were therefore much higher than those in western Europe.