On Friday, the WSE continued its gains from the previous three days and weeks, which began in mid-March this year. Mainly related to the improvement of sentiment in foreign markets, the decline of the dollar and the strong position of the domestic banking sector. This is a result of the change in investors’ views regarding the future actions of the Federal Reserve and new data indicating the ongoing deflation and slowing of the economy.
While the Polish zloty on Friday gave the dollar some room, in response to the EUR/USD correction, the WSE continued to dominate the gains of most industry indices, despite the declines on Wall Street at the beginning of the session. WSE drew more from the sentiment of the core European markets, with indices up in a similar range, and also ended a very good, shortened trading week (no session on Monday) with increases.
WIG20 gained 0.73 percent. It is the highest since March 8. WIG was 0.6 percent higher. It reached the level of 61293.06 points. In turn, mWIG40 increased by 0.14 percent. to 4,588.54 points and sWIG80 by 0.15 percent. Reaching 20924.81 points the turnover amounted to more than PLN 965 million, of which PLN 754 million related to WIG20.
Over the week, the WIG20 is up 5.7 percent. It was the largest increase since the first week of November 2022, when it rose by 6.14 percent. – also in the “four-day week”. WIG gained 4.7 percent. On the other hand, mWIG40 and sWIG80 increased at almost the same pace, 2.56% and 2.56%, respectively. and 2.32 percent.
In terms of sectors, 9 out of 14 indices rose. The energy industry (1.98%), real estate (1.44%) and banking (1.41%) were the most profitable. The auto industry declined by (-2.6%), while the rest, such as food, clothing, pharmaceutical and media companies, recorded less than 1%.
“In the US, we saw a strong decline in producer inflation (PPI), and ex-CPI inflation fell by as much as 1 percentage point. This may reduce market concerns about more aggressive monetary tightening by the Federal Reserve, even at the May meeting. This, in turn, may help emerging markets and support the current weakness of the US dollar. A combination of these factors may have a positive effect on the Polish stock exchange,” Daniel Kosteki, senior analyst at CMC Markets Polska, told PAP.
“The minutes of the last Fed meeting indicated that the Fed is expecting a recession…but for now, the markets are catching a breath as inflation appears to be falling faster than expected. However, a recession is imminent, and this may not be news.” Good for the markets ”- summed up CMC Markets Analyst Polska.
In the WIG20 index, Santander shares made the highest share (2.81%), but PGE shares also rose (2.29%) and Allure (1.94%). PGE and ZEPAK (0.21%) have established a joint venture with Korea’s KHNP for the construction of a nuclear power plant. At the same time, the Ministry of State Assets and the Ministry of Trade, Industry and Energy of South Korea. An agreement was concluded for cooperation and support for the construction project in Pątnów.
Also excelling was KGHM shares during the day (1.7 percent), which grew more than 3 percent. KGHM has announced that it has submitted an application to the Ministry of Climate and Environment for a preliminary decision to build a small modular nuclear power plant (SMR) in Poland.
In the context of KGHM, it is worth noting how strong the recent price increases have been for silver, which in a few weeks has gone from around $20 per ounce to around $25 per ounce. The company is one of the largest producers of silver, and copper prices also appear to have remained at about $25 per ounce. Slightly higher levels, Kosteki noted.
Shares of other WIG20 banks also rose, and PKO BP (1.49%) announced during the session that costs of legal risks related to its mortgage loans indexed in Swiss francs, included in the results of the first quarter of 2023, amounted to PLN 967 million.
JSW (-2.27%), Allegr (-2.2%) and Pepco (-2.07%) bids were the strongest. LPP, Cyfrowy Polsat and Kruk shares fell less than 0.4%.
DataWalk (10%) rate stood out in the broad market, in response to CEO announcements about revenue growth forecasts in 2023. On the other hand, Vigo Photonics (12.6%) increased after publishing preliminary data for the first quarter of the year. 2023. The preliminary result for 2022, in turn, was reacted by the Stąporków exchange rate (-19.48%).
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