Polish Business Survey
Bourse: disappointing again
TuesdayŐs stock market session brought about another disappointing day. Following negative signals coming out of the USA, prices went down even though turnover went up. Analysts consider that the WIG index will not stop dropping until it reaches 19,700 points. IT stocks could well be the most at risk following yesterdayŐs tumble in their value.
Braking in the SEZ
The Italian Brembo, which produces brake parts, is planning opening a second factory in Poland. It is rumoured that this factory could be located in the Gliwice sub-zone of the Katowice Special Economic zone, although Andrzej Pasek of the zone said that nothing was final and that the Italians were still looking at other possible sites throughout the country. The new factory should be larger than the existing facility at Częstochowa. This factory produces spare parts, which are largely for export, the new factory would produce parts which would be directly installed in new cars.
Recording looking up
In the first half of this year the record industry noted a 13 percent increase in sales when compared to the same period last year. Sales will probably reach PLN270m once the full total is known. The big five - Universal, Pomaton, Sony, Warner and BMG together could even reach PLN200m worth of sales in Poland this year.
Cokers soon to be sold
The Zdzieszowice coking works, belonging 100 percent to the Huta Katowice steelworks has increased its capital value by PLN125m to PLN358m as a prelude to a sell off. Jarosław Zwoliński, heading the information department at Huta Katowice has claimed that there are many interested parties. The Zdzieszowice works has a 24.5 percent share in Polski Koks, the company with a monopoly of coke exports from Poland. The other two shareholders are the mining company Jastrzębski Spółka Węglowej (51 percent) and coking company Koksownia Przyjaźń (24.5 percent). This could well attract investors. Last year Polski Koks made sales worth PLN4.3bn, fifty percent more than Węglokoks, the largest exporter of coal.
The Zdzieszowice works is one of the most modern producers of coke in Poland. It currently employs 2,800 people. Last year it produced 3.25m tons of coal, this year 3.45m tons are planned.
Shipyard facing empty AGM
Shareholders of the Gdańsk shipyard will meet on 26 August although both those shareholders supporting the Gdynia shipyard and former shareholders will be missing. The latter are represented by the Arka organisation, which is claiming that the yard was sold illegally.
Gorzyce to be sold
Car parts producers Gorzyce from Sandomierz is soon to be privatised. The most likely purchasers are Federal Mogul, Kalbenschmidt and Mahle. Privatisation advisors are Business Management and Finance from Warsaw. More than 50 percent of production is for export with major clients including Volvo, DaimlerChrysler and General Motors.
Few entrants on bourse
Despite a huge increase in share turnover this year when compared to last, only seven new companies have entered the GPW stock market.
The largest new entrant this year is PKN Orlen. It was sold for more than PLN2bn although demand was 5.5 times more than supply. Other major new entrants were Kogeneracja, Netia and Europejski Fundusz Leasingowy. The amount of new entrants is unlikely to grow quickly owing to the time that is necessary to prepare a company for a stock market entry and the risk that a public offering could turn into a fiasco. Even companies like Netia experienced difficulties. This trend is not likely to change in the short term.