Emotions on the stock exchanges reach its zenith, the indexes quickly entered the bessa area, from where they turned back in a dynamic reflection. The chart of stock market ratings during Monday trade resembled a chart of the seismograph's work during the earthquake than the emanation of the stock market. The amplitude of the fluctuations was so great that the WSE decided to suspend the quotations with caution.
At the end of the day, WIG20 lost 1.49 percent, after one of the most crazy sessions in the history of the WSE. WIG was at the end of the day by 1.47 percent. In turn, MWIG40 fell by 1.28 percent, and SWIG80 gave 1.77 percent. Turning in the wide market amounted to PLN 3.23 billion, of which PLN 2.68 billion concerned companies from WIG20. Let's add that it is turnover without more than an hour of trade, about which later.
A wave of sales on the stock markets brought most of the most important stock indices of the world in the Bessy area, understood as at least 20 %. District from the last peak. So far from the summit on Monday morning were recorded, among others DAX, FTSE250, MOEX, and before the start of the US session also S&PC or NASDAQ. WIG20 in the morning it lost about 7 percent, after a decline by as much as 6.4 percent. On Friday and 4.1 percent On Thursday, which caused the Bessa to the gates with a discount from the summit of 19 percent.
Needless to say, the motive of the global sale was a trade war with the whole world and hardening the position over the weekend. Added to this was the latest assessment of the situation of the head of the Fed Jerom Powell, who summed up on Friday that customs will probably slow down economic growth and increase inflation, which is forecasted by the largest investment banks.
However, the morning panic began to give way and, for example, DAX limited a daily discount from -10 percent. up to about 3-4 percent The losses were made up for termination contracts for indexes in the USA. In a word, the volatility ruled, and the interest in investors trade was huge, as evidenced by the turnover only from the first hour of trade on the WSE, which amounted to about PLN 1 billion. Already in the morning, the WSE issued a message in this context about the occurrence of extreme market conditions, and in the afternoon decided to suspend the quotations on all markets from 15:15 to 16:15 due to ensuring the safety of trading.
We know from the information obtained by Bankier.pl that it could have been about the efficiency of the UTP system, which was exposed to testing extreme working conditions. The suspension fell during the start -up start in the USA. Wall Street was distinguished by great volatility. S & P500, Nasdaq or Dow Jones, after opening, fell by over 3 percent to go out in less than an hour, which in S&PC was even an increase of 3.5 percent. and over 8.6 percent Reflection from the daily DNA.
Kevin Hassetstt, one of Donald Trump's older advisers, had to pick up the market, who pointed out that the president is to consider 9-day erection of duties to all countries except China. However, the White House quickly denied these reports, and the Indexes on Wall Street retreated again and at the end of trade in Warsaw lost about 0.5 percent.
On the WSE after the phase of taking orders that came after suspension, the resumption of continuous ratings took place at 16:30. For a moment, WIG20 losing about 2 percent before suspension He even went a plus, but he ended the session the lowest from February 5 this year. After the third day of the sale, which, however, testifies to an attempt to slow down inheritance. Still the keys to market moods lie in the hands of the American administration and whether and how it ends the trade war with the whole world. An EU proposal appeared on the table regarding total mutual exemptions from industrial goods duties between the USA and the Union. The storm on the stock exchanges is ongoing, but on Monday the sun was piercing from behind the clouds, but the cataclysm could not end yet, because the forecasts are still unfavorable.
“There has been a demand for the announcement of the end of declines or the return of increases is still a long way, but on our main charts, whether WIG20, MWIG40 or SWIG80, at the moment white candles are drawn, although the indexes are still on the downside,” Przemysław Smoliński, BM PKO BP analyst, told PAP.
“The situation is no longer as tragic as on Friday, because it is clear that the demand has appeared on the market. The declines have been brake and how much the situation somehow will not deteriorate on the ocean stock exchanges, it is also rather with us to be expected to go into consolidation or corrective reflection, but no continuation of movement below,” he said.
“The same cannot be said, e.g. in the case of a German DAX, which has a black candle and which decreases more strongly than the Warsaw market,” he added. Dax lost over 4 percent when the session was closed in Warsaw.
In WIG20, PGE (-5.93 percent) and banks affected the largest decreases; Pekao (-3.5 percent) and Alior (-3.88 percent). Over 3 percent The prices of CD Projekt, Allegro and Kęty shares have also dropped, and nearly 3 percent CCC course. Only the PKO BP exchange rate (1.37 percent), gaining at nearly PLN 384 million of trading and reflecting from the historic DNA, marked in the morning, a Pepco exchange rate (2.17 percent).
A rally of nearly 20 percent echoes on the wide market. From the daily minimum Vigo Photonics exchange rate (8.7 percent) after information about a new agreement worth at least PLN 192 million. High volatility is an ideal environment for XTB business, whose exchange rate gained 5.9 percent. It is also worth mentioning the JSW (3.77 percent) of increasing increases after information about making a decision on applying for reimbursement of a solidarity contribution.
Michał Kubicki
