Telecoms and energy push up bourse
The Warsaw stock market increased yesterday with the WIG20 index up 1.9 percent to 1,169 points.
Turnover yesterday was PLN185m with 56 stocks increasing in value and 34 decreasing.
The market was led by Elektrim which increased by 7.7 percent to PLN21.10 as news of its deal with Vivendi hit the markets. The extra funds are badly needed by the cash poor Polish conglomerate.
PKN also increased in value as news of an increased offer for the State's shares in the oil giant broke. The Hungarian MOL has offered an additional PLN5 per share bringing its offer to PLN30 per share. It is believed that in the wake of this news the Austrian OMV could also increase its offer. PKN shares were up by 4.1 percent to PLN19.20.
The indexes are expected to increase in value today. One stock which will be very much in demand is that of TPSA. After the closing bell yesterday the government confirmed that it had sold a 12.5 percent stake in the company to the consortium of France Telecom and Kulczyk Holding for PLN20 per share. This means that the company now has a 47.5 percent stake in the former telecommunications monopoly. Yesterday TPSA shares increased in value by 1.2 percent to PLN13.10.
Despite this good news one must remember that the markets are still very much down on what they were at the beginning of the year and that the basic reasons for the collapse such as uncertainty over the economy and the new government as well as the state of foreign bourses are still with us.