Warsaw (Puls Biznesu) – Despite an increase noted on Monday, today, the WIG20 index fell 1.54 percent to 2,830.39. The volume of trade was again very low.
Wednesday is widely expected by analysts to start changes in the market after two days of mixed trading. The changes will depend on the communiqué of the Federal Open Market Committee. Fed is widely expected by the market to raise interest rates for the 15th consecutive time. However, if this is not the end of increases, emerging markets face investors outflow.
In Poland, the political risk is rising. Andrzej Lepper, the leader of the populist Samoobrona party, is getting closer to become the member of the cabinet. The present Minister of Finance Zyta Gilowska will probably not stay in the government if Lepper joins, which will adversely affect the value of the Polish currency zloty and further weaken the Warsaw stock.
KGHM copper producer was the only blue chip to resist falls, thanks to high copper prices. Smaller blue chips, including Orbis hotel operator and Netia telecom suffered most. DM BZ WBK analysts recommended to increase stakes in TP telecom and decrease Netia. They recommended TP stock to ‘accumulate’ with PLN of 25.8 as the target price. At the same time they recommended Netia stock to ‘reduce’ with PLN 4.7 as the target price. Shares of blue chips worth only PLN 393m changed hands.
Smaller companies keep rising. Hygienica hygiene producer jumped 18.1 percent after the company said it would raise its capital by PLN 4.9m. Lubawa added 7.8 percent after it won a tender to deliver for Milagro-Powlekarnia, an order for the army worth PLN 9.2m. Lubawa itself is an acquisition target of a foreign company, which caused the stock to jump last week.