Poland/Stock market report
Warsaw (Puls Biznesu) – Political problems and the budget for next year disturbed investors on the Polish stock exchange GPW. In result, the WIG20 index shed 0.87 percent to 1796.53 points. In the morning, the indices followed their Western European counterparts and grew. Then, however, Miroslaw Gronicki, the Finance Minister warned that taxes will have to be raised unless the Parliament approves of two laws reducing expenses. Then, Krzysztof Pater, the Social Policy Minister announced that he was considering stepping down (he did in the afternoon).
TPSA telecom and PKN Orlen fuel giant, which were helping the index before, fell down. KGHM followed despite the ‘buy’ recommendation issued by CAIB. Pekao bank was very weak, and PKO BP noted the third day of losses. Netia telecom was one of the best performers among blue chips. The company rose after BDM PKO BP published a positive recommendation.
Among smaller companies, Elektromontaz Warszawa construction company, which will probably announce bankruptcy in the near future, jumped 42 percent. Mostostal Warszawa construction company fell after CAIB decided not to analyse the company because its capitalisation and free flow is too low.