WIG20 loses 2.4 percent this week

APA - Austria Presse Agentur
opublikowano: 13-01-2006, 19:55

Warsaw (Puls Biznesu) – The last session this week started with a big drop but then the main index moved within the narrow range of 20 points.

Warsaw (Puls Biznesu) – The last session this week started with a big drop but then the main index moved within the narrow range of 20 points.

Investors were waiting for decisions in the political scene but unsuccessfully. There is still no certainty whether a coalition will be built and which parties will be included. However, MPs decided today to read the budget bill for the second time tomorrow and to vote over it on January 24th, which means the end of the crisis in the Parliament, and good news to investors. Bad news is that according to some politicians the Law and Justice (PiS) ruling party may form coalition with populist Samoobrona and the peasants’ party PSL. Investors got nervous. Falls in the Western European stock markets were another factor deteriorating moods of investors on the Warsaw Stock Exchange.

The WIG20 index ended 1.7 percent down, WIG fell 1.2 percent. The small capitalization companies had a better day – MIDWIG lost only 0.4 percent. Within the last five days, WIG20 lost 2.4 percent after it had gained 7.5 percent a week earlier. Today, investors were less active then on Thursday. Stocks of blue chips worth PLN 745m (EUR 195.2m) changed hands, PLN 100m less than yesterday.

TP telecom continued yesterday’s losses caused by problems of its investor France Telecom. Shares worth PLN 188m changed hands and fell over 2 percent. Also the other loses among giants – PKN Orlen fuel giant – attracted much interest. Shares dropped nearly 3 percent while the trade amounted to PLN 136m. Some of foreign funds might be selling its shares today after Citigroup lowered its recommendation to “sell”. Shareholders of Pekao bank whose investor is Unicredito, fell 4.3 percent, the highest loss among WIG20 companies and second worst among all stocks. The merger of this bank with BPH (subsidiary of German HVB) is still not clear as the Polish government postpones any decisions.

(PLN 1 = EUR 0.262)

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Podpis: APA - Austria Presse Agentur