WIG20 the best in Europe. Capital flows into the stocks of banks

Net capital inflows to emerging markets in December totaled $ 16.8 billion. – the Institute of International Finance (IIF) reported in the report. And you can see from the stock exchanges that it wasn’t just December.

The WIG20 gained 2.3% on Tuesday, which makes it the best index in the world that day. The quote at the close of Tuesday’s session was at 2,344.45 points. it reached the highest level since November 12 last year. The second best index of the day is the Russian RTSI, which is gaining 2.2%, and the third is the Israeli TA 35 with 1.9%. growth.

Since the beginning of the year, the main index of the Warsaw Stock Exchange has already gained 3.4%, which is the sixth highest result in the world, after the Turkish (+10%), Hungarian (+5.7%) and Greek (+4.6%) exchanges. %), India (+ 4.1%) and Singapore (+3.9%). Polish increases are mainly one industry – banking.

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The fact that the stock market increases are due to the activity of foreign capital is visible in the fluctuations in the zloty exchange rate. After a long break, this against the dollar was again below PLN 4 and this year is gaining 0.9%. It appreciated against the euro by more than one percent.

The stock market is strong with banks

Since the beginning of the year, the WIG-Banks index has already gained 7.8 percent. Investors note that the industry has gained strong potential for profit growth in the form of interest rate increases. As interest rates are rising, so will the banks’ interest margins. Even with low margins, banks already broke last year. pre-pandemic profits, what will happen when these margins increase? – investors may be thinking.

Business Insider Polska

And at the same time, this is an industry that it has not paid dividends for the past few years, or only paying little due to the limitations of supervision. In this way, collateral was collected for the repayment of franchise holders after the judgments of the CJEU. In the past, however, banks were the best payers of dividends on the WSE and paid them regularly every year. This year, the dividend bag may be dissolved.

Although banks generally lose cases in courts with franchise holders – according to the Navigator SBB data out of 3,493 cases won by franchise holders, there were only 90 banks won – however, it is also possible to resolve disputes amicably. In just three months of last year there was an amicable solution to 5.7 thousand. cases under the auspices of the Polish Financial Supervision Authority and the Arbitration Court Service System, and another 10 thousand. Only in eight hundred cases a settlement was not reached. These are higher numbers than in the case of court solutions. Settlements usually consist in converting a foreign currency loan into PLN, as if the client took the PLN loan at the beginning of the contract with the settlement of the difference in the costs of interest and capital.

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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