What Trump began, Glapiński finished. Banks pogrom and the largest declines since February '22

After deep drops on Thursday, Friday brought an even stronger discount on the Warsaw Stock Exchange. Actions were cheap due to the escalation of the world customs war and announcements of deep interest rates at the National Bank of Poland. Banks' shares made dramatic declines.

It was the largest two -session drop in the WIG20 index since February 2022when Russia invaded Ukraine. Then in two days WIG20 fell by 13.5%. Now the balance of the last 48 hours is -10.2%. On Friday, WIG20 lost as much as 6.37% and checked in at 2,497.99 points. Let me just remind you that the day before the flagship index of the Warsaw Stock Exchange scored a 4.08%decrease.

In this way, in just over a week WIG20 made a congress of over 11% and erased all the growths of March and a significant part of the increases from February. It is a correction of the phenomenal rally of our stock exchange, in which WIG20 gained over 35%for four months.

On Friday Turnover on the wide market was very high and exceeded PLN 3.5 billionof which almost three billion fell on companies from WIG 20. This would suggest that foreign investors who could decide to make quite large profits from the last pairs of months behind the April burst.

But virtually the entire market was falling. mWIG40 scored a sliding by 5.04%, SWIG80 recorded a decrease by a 2.9%decrease, and the entire WIG was 5.76%under the line. The statistics of the Friday session are also very eloquent: nearly 80% of the values ​​from the Main Square ended the day under the line, and less than every sixth company was in the plus. One of these exceptions was Wrocław Datawalk, whose quotations went up by more than 14% after information about raising the recommendation by DM BOŚ analysts to “Buy”.

As on Thursday, it was not difficult to indicate the main “culprits” of such deep declines on the stock market floors. The first of them was Donald Trump, who decided to survive the whole world at Drakon rates starting from 10%. On Friday, the US President assured investors that “his policy would never change.” Which caused even greater panic on global financial markets. This was seriously treated by the communists from Beijing, who decided to answer the symmetrical, 34 % duties to goods imported from America. It looks like a violent start to the global trade war, in which everyone is all clusing, and international trade decreases.

The second “Hossa gravedigger” on the WSE was the president of the NBP Adam Glapiński, who announced on Thursday afternoon a sharp – total of reaching 100 base points – interest rate reduction. The same head of the NBP a week ago assured us that “there are currently no grounds to change interest rates.” In this information, investors intensively bought banks' shares in March, carried out the industry WIG-Banki benchmark to the fresh peak of all time. On Friday, WIG-Banki dived by over 10% and has already been a recent record of 17.5%.

The prospect of lower interest rates at the NBP also means lower interest revenues of the banking sector and, as a result, a decrease in the expected bank profits and dividends. However, such a sharp discount of bank shares is also the result of the fact that, as the largest and often the most profitable companies, they constituted a “gate” for foreign investors who want to invest in Poland. Nevertheless, looking at the 11th of PKO BP's values, a similar decrease in Alior, mBank or Pekao, you may wonder if the market has not reacted a bit.

– Banks' shares from Japan to Europe have entered the phase of panic sales. This was not missed by Poland – Piotr Kuczyński commented on X DI Xelion.

It is worth being aware of what “slaughterhouse” took place on the largest and most famous stock exchanges in the world. When the session in Warsaw ended, the S&P and NASDAQ reduced nearly 4%. The most important indexes in Europe recorded declines from over 4% in Paris and London, for nearly 5% in Frankfurt 6% in Madrid and over 7% in Milan. Against this background, -6.4% on WIG 20 does not raise much controversy.

In all this customs and clicks, monthly data from the American labor market disappeared, which are usually the stock-exchanged dominant of the first Fridays of the month. Let's note that the labor market in the US in March he was sitting unexpectedly well, and Elon Musk managed to slow down only 4,000 federal officials (i.e. nothing as much).

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