June 8, 2023


Complete Canadian News World

Agreement with Orlen and 30 percent. rate increase. The results rocked stocks of popular companies

In the absence of more serious macroeconomic data than the real economy and cooling sentiments regarding the banking sector, markets are focused on correcting last week’s declines. The crisis regarding financial solvency of banks may not be over yet, as stated by US President Joe Biden, but the markets moved around for a while, focusing on the positive news.

On Wednesday, there was information from China, which intends to reduce regulations related to the technology sector, which will take effect in 2020. Investors are preparing for a series of macro data from the US economy, which will hit the markets on Thursday and Friday. Equities in Europe seized a moment of better sentiment to rise 1.2 per cent. in the case of DAX, or 1.4%. on CAC40. Compared to them, WSE performed worse, but demand managed to lift WIG20 above the psychological level of 1700 points. In conclusion lost last week. The sWIG80 wheel is approaching its historic maximum.

WIG20 gained 0.9 percent. Up to 1,709.39 points, WIG was 0.71 percent higher. And at the level of 57173.15 points. In contrast, mWIG40 increased by only 0.02 percent. To 4408.75 points, sWIG80 rose 0.96 percent. and less than 9 percent. From the historical maximum of September 2021. The turnover on Wednesday was PLN 1.03 billion, of which PLN 770 million concerned companies from the WIG20 index.

In terms of sectors, growth was again outperformed by banks (2.38 percent) and joined by pharmaceuticals (2.3 percent). Only IT, construction, food and fuel companies posted declines, but all on a scale of less than 1 percent.

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In WIG20, Dino price (-3.77%) acted as a brake, as the share price retreated from the technical resistance area located near PLN 400. Mateusz Czerzhanowski of Noble Securities wrote, citing PAP: “After closing the bearish market gap that arose after publishing the results Weaker than expected, these stocks are returning lower.”

Banks with mBank (4.18%) and PKO BP (3.13%) stood out on the positive side. In the context of the latter, unofficial reports emerged from the René Moawad Foundation on Wednesday that there would be another change in the position of the bank’s president (formally a member of the board of directors), but the market was indifferent to the news in the face of many. Changes in this chair in recent months.

JSW’s share price rose sharply (3.39%), as an update of DM BOŚ’s recommendation was published on the market, supporting the ‘Buy’ recommendation with a target price of PLN 100 per share. Interestingly, the brokerage firm’s forecast assumes no dividends will be paid from the company until 2025.

In addition, the share price of Cyfrowy Polsat (3.05 percent) drew attention after preliminary results, which rebounded from several monthly lows.

In the end, CD Projekt’s share price (1.08%) ended in the black, thus protecting the gaming sector from declines in the face of the massive opponent of Ten Square Games (18.71%) from mWIG40. The mobile game producer’s share price responded to the earnings report with a loss in the fourth quarter and the company’s board of directors conference call.

CD Projekt, which behaved badly at the beginning of the session as part of the weak sentiment towards the industry, compensated for the declines in the following hours. A long lower shadow appeared on the candlestick chart, which could be a catalyst for the bulls in the upcoming sessions.

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On the other hand, in the medium-sized companies sector, the Eurocash price stood out (7.57%), which in turn had a positive reaction to the 2022 financial report and profits that exceeded expectations. Shares of Mobruk (5.54 percent) remained strong, and along with other biotech stocks, shares of Biomed (4.32 percent) rose strongly, and Celon Pharma from the industry rose 2.14 percent. Scoop (3.19%), Medinice 4.52%, but Molecure earned the most (7.73%).

On the other hand, shares of Millennium rose by 4.06%, and the bank completed a deal to sell shares in Millennium Financial Services to insurance companies belonging to the Talanex Group. In February, Millennium Bank reported that the contract value was around PLN 500 million.

In the broad market, it is worth paying attention to the People Can Fly rate (11.43%), which increased after information about a new investor from South Korea. However, Atrem’s exchange rate rose more than (31%) and the trade was suspended after the company revealed that it had signed a contract with PKN Orlen worth more than PLN 250 million. Atrim will be a partner in the Contract Enforcement Consortium. Atrem is a subsidiary of GK Immobile, whose shares increased by 29.72 percent.