Shares fall

Alan Heath
11-09-2001, 00:00

Shares fall

With the weekend to consider the falls on Wall Street, traders were in no mood to buy yesterday. Indeed the news everywhere was bad, London fell to its lowest point since October 1998 whilst Tokyo hit depths unseen since 1984.

The WIG20 fell to 1,147 points, a drop of 1.9 percent whilst the overall WIG index lost 1.4 percent to reach 12,861 points.

Turnover was PLN125.5m and 33 stocks increased in value whilst sixty lost out.

Yet again Netia was on the slide, this time losing almost six percent to fall to PLN7.15. Ratings agency Moody's again cut its credit rating, this time from B2 to CAA1 and warned that it was keeping its eye on the beleaguered telecommunications company and could cut its rating yet again.

TPSA fared little better. Despite last week's news that France Telecom was increasing its shareholding taking a significant 2.5 percent stake more at PLN20 per share, traders were happy to sell the stock at PLN12.70. on a day when the value of the former telecommunications monopoly dropped by more than four percent.

Another privatisation case did not do very well either. PKN Orlen saw steady increases in its stock last week as the Austrian OMV and Hungarian MOL upped their offers for a 17.6 percent stake in the firm. However traders evidently decided that it did not make any difference and that the new government will not sell what is left of the state’s shareholding in the firm. PKN Orlen lost 1.9 percent to fall to PLN18.25.

The future is not looking bright. With analysts expecting London to lose another ten percent or so then Warsaw can only fear much more. This week should see stock lower than 1,100 points with the threat of the WIG20 dropping into triple figures. Not a good performance considering it started the year off at 1,800.

© ℗
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