Session marked by a sell-off of the zloty and concerns about lockdown, in CCC, 11 bit studios and AmRest

11bit, play2chill, amrest, ccc, wielton

Market map. Source: ATTrader.pl

The Friday session on the WSE was marked by a strong sell-off. Around 1 p.m., the WIG20 drops by more than 2 percent, the mWIG40 by 1.75 percent, and the sWIG80 loses 1.5 percent. In this respect, the Warsaw Stock Exchange is today one of the weakest in Europe. It is worth adding that this is another such situation recently. Since the beginning of November, the WIG20 has already lost 7 percent. and today it is at the lowest level since July this year. At the same time, the German DAX and French CAC were improving their historical records.

The zloty is record weak

The flight of foreign capital from Poland is best seen in the zloty exchange rate. Today you have to pay PLN 4.68 for the euro, PLN 4.14 for the dollar, PLN 4.48 for the Swiss franc, and PLN 5.56 for the British pound. In the case of the euro, this is the highest exchange rate since the global financial crisis of 2009.

The negative factor that weighs down the zloty the most is the dovish rhetoric of the MPC so far and the lack of a specific policy regarding the path of interest rate tightening in Poland. Despite the commencement of the cycle of interest rate increases and positive surprises (i.e. larger increases than expected by the market), the NBP and President Glapiński did not clearly define possible further steps in monetary policy. Currently, the market uses interest rate futures (FRA) to price increases in the reference rate to almost 3.5 percent. within 12 months. It is even above our current expectations (3%), commented economists at BNP Paribas.

The exporters are mainly happy about the weakness of the Polish currency. This group includes, among others game and software producers. Today they stand out due to the scale of their growth CD Projekt, Ten Square Games and 11 bit studios. In the latter case, the latest financial results are an additional factor.

EUR / PLN chart

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Austria has announced a lockdown

The second important topic for the Warsaw Stock Exchange is the resumption of concerns about the re-closing of the economy. It was the government in Vienna that decided to take this step. Lockdown in Austria will start on Monday and will last at least 20 days. There has already been speculation on the market that Germany may take a similar step, as the number of Covid-19 cases has recently been growing rapidly. The decision of the Austrian authorities had an impact on the course CCCwho is additionally not helped by the fact of being an importer. On Friday at noon, the footwear distributor’s quotations fell 6.1 percent. up to PLN 104.50. This is the lowest rate since May this year. The specter of the lockdown also scared shareholders AmRest, i.e. the operator of a restaurant chain in Europe. On Friday, the company’s share price drops by 6 percent.

11 bit studios and Wielton with the resulting surprises

Companies’ results are also in the center of importance on Friday. She praised the results better than the consensus 11 bit studios. The Warsaw game producer generated a net profit of PLN 4.1 million in the third quarter. The average of analysts’ forecasts was PLN 2.6 million. Revenues were in line with expectations and amounted to PLN 13.4 million. Investors warmly welcomed the report. On Friday, 11 bit studios shares are up 5.6 percent. up to PLN 495.

The results turned out to be a big disappointment Wielton. The manufacturer of semi-trailers and car trailers generated in the third quarter of 2021 PLN 5.5 million of net profit, PLN 12.1 million of EBIT profit and PLN 28.6 million of EBITDA. In relation to the PAP consensus, the results are weaker by 59, 21 and 39 percent, respectively. On Friday, the Wielton share price drops by 19 percent. up to PLN 9.20, i.e. the levels seen previously in April this year.

Crash on the Play2Chill course

The stock quoted on NewConnect Play2Chill is also hot. The stock price of the studio crashed after the poor launch of the Motorcycle Mechanic Simulator. The quotations did not start on Thursday, because there were so many sales orders that TKO indicated over 60%. stock discount. On Friday, the quotations started from the level of PLN 6 per share, i.e. by nearly 59 percent. lower than Wednesday’s closing (PLN 14.50). The massive sell-off has attracted the attention of speculative capital. In the next two hours, the studio’s quotations reached the level of PLN 9.81, which means an increase of over 60%. relative to the opening price.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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