Friday ends a week in which investors focused mainly on the weakness of the Chinese economy and the rise in US bond yields. Positive information about the state of the local economy (labor market, retail sales, industrial production) and “hawks” in their pronunciation of the so-called. The “Fed Minutes” indicates risks of increased inflation. This means that the Fed’s restrictive policy may continue for a longer period than expected by the market. More details may be forthcoming at the Jackson Hole conference next week.
The global sentiment was related to the quotes of the indices on the Warsaw Stock Exchange, especially the WIG20, which was additionally affected by the influx of foreign capital from emerging markets, which also includes stock exchanges in China, and the rise of the dollar. Friday was kinder for most companies than the blue-chip basket, but the index ended up in the red anyway.
On Friday, the WIG20 fell by 0.33%, and the WIG reached 68,084.46 points. After a decrease of 0.32 percent. In turn, mWIG40 decreased by 0.09 percent. It is at the level of 5219.45 points, while sWIG80 ends the week at 21105 points. It fell by 0.65% on Friday. The turnover in the session amounted to more than 988 million PLN, of which 815 million PLN related to WIG20.
In its weekly statistics, WIG20 gave a score of 4.31 percent. It was its worst week since the week ending March 17, when it fell 6.75 percent. WIG is down 3.43 percent, while mWIG40 and sWIG80 have returned 1.27 and 1.61 percent, respectively, this week. However, the WIG20 managed to defend the psychological support at the 2,000-point mark. Slightly lower is the technical support, which is the July minimum at 1989 point, and just over 100 points below the May minimum, a return to which would mean quite an important correction. So far, since its July peak, WIG20 is down less than 9 percent.
In WIG20, Dino focused the most attention, as its share price fell 8.35% after its second-quarter results. With over PLN 256 million in trading volume – the largest on that day in the WSE. The exchange rate fell below PLN 400, the lowest since the end of April.
During the session, investors also reacted to KGHM’s results (-1.35%), which were below consensus.
Next week, Orlen will present its results, which have fallen for five straight sessions after falling 0.37 percent on Friday. With the second market turnover of PLN 122 million.
At the end of the session, the shares of the largest banks were freed from stagnant supply, and then the WIG20 recovered a few points. All WIG20 banks ended the session higher, with Alior having the most (2.77%). In the morning there was fresh news from the government spokesman about a possible extension of the credit holidays.
The leader on the growth side of the WIG20 was shares of CD Projekt (3.08%), which announced the day before that it would soon present a new installment of “Widma Wolnoci”, a paid addition to “Cyberpunk 2077”. In all, in the WIG20, the share prices of 13 companies increased, and the LPP acted neutrally. The magnitude of the drop and the spins of Dino and Orlen made the indicator red towards the end of the session.
It is worth noting the latest update of the short selling history, according to which Marshall Weiss increased its positions on Grupa Kęty shares (-0.76%), and AGIO SMART MONEY FIZ reduced its positions on Vigo Photonics shares (0.0%).
Broadly, Agora shares (3.09%) may attract attention, as it published its results for the second quarter before the session started. The results were also shared by Oponeo (-1.86%), which reported that net profit rose to PLN 8.4 million from PLN 4.7 million in the previous year. In contrast, Mercor (-2.28%) in the first quarter of the 2023/24 fiscal year recorded a net profit of PLN 11.7 million, more than the previous year when it was PLN 10.7 million.
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