Shares retreat but NYSE offers solace

Alan Heath
18-09-2001, 00:00

Shares retreat but NYSE offers solace

Shares on the Warsaw stock market reached their lowest point since November 1998 with the WIG20 shedding 2.1 percent to fall to 1,041 points and the WIG losing 1.6 percent to reach 12,035.

Once again it was the main line blue chip stocks that bore the brunt of the falls as is witnessed between the differences in the level of decline of the two indexes.

Turnover was low at PLN136m although many traders could be holding their fire until the situation in New York becomes clear. At the time of writing on Monday evening the Dow Jones and Nasdaq had lost around five percent each which considering the pessimism in some quarters was not as bad as could have been expected. This means that there might be a minor correction upwards tomorrow in Warsaw.

Current political events resulting from the tragedy last week in the USA suggest that telecommunications and high tech companies could receive an added boost of more defence contracts. Not so however for Netia which saw another 5.5 percent wiped off its value and the stock fall to its all time historic low of PLN5.15.

Gdynia based systems integrator Prokom also lost 3.1 percent after a decision by shareholders to go ahead with a PLN200m convertible bond issue. Two thirds of the money raised from this issue is to be used for acquiring other companies while the remainder is earmarked for debt restructuring. The good news for Prokom is that the shares of Softbank, one of the believed intended take over targets, were also down 4.4 percent to PLN19.40. Last week Softbank took action to protect itself from what it considers could be a hostile take over bid from Prokom. Prokom stock has lost around 35 percent of its value in the past few months.

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