Warsaw (Puls Biznesu) – Investors keep withdrawing from Central European markets which are politically unstable. After antigovernment unrests in Budapest, today Polish politicians blew up the coalition.
Samoobrona, one of the two partners of Law and Justice (PiS) ruling party within the coalition, said it is not going to support the budget proposed by PiS. The zloty immediately depreciated, the WIG20 index followed. It dived 40 points and ended at 2,942.47 points. It would have been much worse hadn’t it been for KGHM. The copper producer rebounded after yesterday’s losses. The stock added 2.3 percent to PLN 99.5. DM BZ WBK estimated the stock at PLN 100 in its report dated September 20. Fuel companies dragged the market down. MOL lost 4.7 percent, Lotos and PKN Orlen also ended down after DM BZ WBK lowered their target prices. Among blue chips, GTC and Agora were the only blue chips except KGHM to grow. Bioton and Netia managed to resist the downward trend.
Small and mid caps did much better. WIRR and MIDWIG rose 0.8 percent each. MIDWIG increased to its 44th record this year and ended at 3,107.43 points. Huta Ferrum steel plant jumped 19.8 percent to the highest level ever (PLN 57.5) after Alchemia bought 580,500 shares at PLN 35.76 each increasing its stake to 9.99 percent. Zlomrex fell 0.4 percent to PLN 7.14 on the news that it announced a tender offer to buy 807,000 shares of Centrostal Gdansk, or 15.56 percent of the capital. Zlomrex has already 50.44 percent of the company. The tender offer may fail.