In the European markets, despite the initially positive moods in the morning, the rest of the day was dominated by information from Austria about the introduction of a full lockdown for everyone without exception. This is another country, after the Netherlands or Latvia, that tightens restrictions for citizens, and thus limits economic activity.
The confluence of negative information, discounted by investors, has been difficult to overestimate in recent days. The weakening zloty, the crisis on the border with Belarus, speculation as to further oil prices and rising inflation, followed by the reactions of central banks, which by raising interest rates, on the one hand, try to counteract it, and on the other hand, cool down the economic momentum.
Despite the fact that the last days are records of quotations on the core markets (France, Germany) or quotes around the records with the prospect of another (USA), our WSE seems to be following its path. Unfortunately for investors, it chose the path of a significant correction, which has been going on since mid-October, when the WIG20 reached the level of 2,478 points. Since then, the index of the largest companies has given up nearly 10 percent. and is currently at end-July levels.
The Friday session was very negative for most of the day, as the drops sometimes exceeded 2%. on most indexes. However, around 4 p.m., information was released about President Biden’s spending plan, approved by the House of Representatives, as expected. The news had a positive impact on the US indices, and in Poland they slightly reduced the sell-off.
WIG20 lost 1.02 percent, mWIG40 deepened Thursday’s decline by 1.04 percent, the small companies index lost the most, dropping 1.22 percent. The broad WIG is at 69,415 points, losing 1.04%. The turnover exceeded PLN 1.58 billion, of which over PLN 1.26 billion related to WIG20.
Footwear CCC lost the most, dropping by 5.57 percent, which as usual strongly reacts to the specter of another lockdown. Another company from the LPP industry lost approx. 2.61 percent.
PZU fell by 4.45 percent. and on Friday it was also in the lead of depressing companies. Just like the entire financial sector. The banks lowered: PKO BP by 2.6 percent, Pekao by 2.09 percent, and Santander by 1.43 percent.
The price of CD Projekt increased the most – by 4.22 percent. Allegro continued its increase by 0.97 percent. In addition, the following grew: KGHM by 0.99 percent, JSW by 1.21 percent. PGNiG also tried to help, rising by 3.88 percent.
Sectorally, most industry indices lost. Only mining, drugs, telecommunications and the media rose between 0.77 and 1.36 percent. The games sector clearly gained, growing by 3.5%. Game producers are certainly favored by the strong dollar and the eventual lockdown on the horizon. 11 bit studio stood out here, increasing by 6.58 percent, Ten Square Games increased by 1.61 percent, and CiGames by 1.58 percent.
The situation on WIG20, where 7 companies were positive, reflects the situation on the entire stock exchange, where 64 percent. companies experienced declines, and only 25 percent. grew.
On the broad market, Mabion saw an increase of 3.13%. The rate was even quoted above PLN 70. Eventually, the trading sessions closed at PLN 69.10 per share. The company recently announced the end of cooperation with Mylan.
Thursday’s strong declines were rebounded by mBank, which rose by 3.42 percent. Alior had another day of decline, on Thursday it was 2 percent lower. The same as the entire banking sector passing 2 percent. discount.
Solid growth of 19.82 percent MPay, which has recently fallen sharply, due to the objection of the Polish Financial Supervision Authority to the takeover of BM BPS. The latest increase was not preceded by any announcement from the company.
The photovoltaic producer ML System was also doing well. It increased by 8.75 percent. We wrote more about the results in the photovoltaic industry in this article.
Wileton stood out negatively, falling by 14.47 percent. This is the effect of the reported results, which turned out to be below consensus.
|Closures and changes of selected stock market indices in Europe|
|Indexes||Country||Value (points)||1D (%)||1W (%)||1M (%)||1Y (%)||YTD (%)|
|Euro Stoxx 50||Eurozone||4356.47||-0.62||-0.32||4.55||26.20||22.63|
|FTSE 100||Great Britain||7223.57||-0.45||-1.69||0.08||14.04||11.81|
|RTS INDEX (in USD)||Russia||1723.74||-2.17||-3.39||-9.28||36.92||24.24|