The session brought an attempt to test the psychological bear level on the WIG20, which encourages deeper correction, but the bulls, allowed the script of consolidation in the game. Emotions on the stock exchange were caused by further resulting reports and dividend declarations.
The day on the WSE ended with a decrease in WIG20 by 0.57 percent, with a WIG discount by 0.56 percent. and decreases in mWIG40 (-0.45 percent) and swig80 (-0.99 percent), which went back from the historic peak corrected the day before. Turnover on the wide market amounted to PLN 1.57 billion, of which PLN 1.19 billion concerned companies from the WSE.
The day brought a handful of fundamental macro data, starting from the first rapid respect of GDP growth in Poland, through reading inflation for April and data from European economies. During the day, the president of the American Federal Reserve Jerome Powell also took the floor, which, however, he basically repeated the current narrative of greater flexibility in monetary policy. In addition to domestic data, local variables toured the results of companies.
It seems that the front of customs wars has yet left the investor radar after the US and China made a 90-day truce. It is true that emotions can be heated by the case of a double -sided EU state trade agreement, but in this topic silence for now.
More is happening in turn in terms of war in Ukraine. On Thursday, Russia's peace talks with Ukraine in Istanbul began, although Putin's absence, with whom Zelanski was ready to meet, puts the appropriate intentions of the Russians. In addition, the oil market reacted 3 % The discount on the expected US-Iran nuclear agreement, which may result in sanction at Tehran.
The session on the WSE was characterized by weaker moods, especially in the morning when WIG20 deepened the minimum correction from the top, descending below 2800 points. This is a psychological level, which is organically lower consolidation and bulls abutment. His devotion would give birth to a risk of deeper correction from the last peaks. Bulls, however, two bears attempts have been successful, therefore, despite the decline at the end of the session, the day can be considered a tissue test of strength with an indication. At least on WIG20. On the wide markets, it is worth citing statistics in which 57 percent recorded decreases. GPW values, and only 31 percent scored growth. Lower than average turnover, however, does not confirm the determination of supply.
In Europe, at the end of the session, the DAX gained about 0.6 percent. The FTSE100 grew by 0.4 percent, the CAC40 was neutrally recorded, but on Wall Street S&PC, Nasdaq and DJI they lowered between 0.2 and 0.5 percent. in the case of technology companies. After 17.00, however, began to go out.
“It seems that this is a purely technical correction. Both our market and American are after a long period of growth, so it seems that such a break is natural and a further good script cannot be ruled out for the stock market,” Mateusz Chrzanowski, the Noble Securities analyst, told PAP.
In his opinion, investors return to a positive view of emerging markets, as was the case in 2007-2009.
“We accept the script that we are coming back to the positive view of investors at emerging markets. If it persists, the level of 3,000 points on WIG20 would not be excluded. This year. It may help us with a more rigid RPP approach to the issue of reductions, which may cause USD/PLN below 3.80 to maintain. Developing 3000 points It will allow you to look at the historical record of the Blue Chip index with greater optimism, about which more in the article “How can WIG20 reach where he has not yet been?”.
KGHM shares (-2.67 percent) from WIG20 stood out in the company's review, which the day before after the session showed better than consensus results. Despite this, the course on Thursday was falling and deepened the discount after a communication that the management does not recommend dividend payment this year.
He also reduced the PGE exchange rate (-2.13 percent) from the rest in WIG20, just like other energy companies, the next day, correcting increases from recent weeks. As reported by the Ministry of State Asset, four state-owned companies in the years 2025-2035 will allocate PLN 600 billion for investments in energy. Orlen (-1.58 percent) is to carry out investments worth PLN 350-380 billion, Tauron (-1.46 percent) worth about PLN 100 billion, Enea (-0.62 percent) worth PLN 107.5 billion, and PGE PLN 18 billion for energy storage and PLN 75 billion for its distribution. As added, the value of other PGE investments will be announced in the new strategy.
In WIG20, there were a total of 13 companies under the line, including PKO (-1.7 percent), Kęty (-1.4 percent), CD Projekt (-1.2 percent), Kruk (-1.12 percent) and Pepco (-1.1 percent) and mBank (-1.1 percent), which returned over 1 percent. Santander's course (0.0 percent) has survived neutrally. The leaders of the increases were trade companies: Żabka (2.5 percent) and CCC (1.2 percent). PZU (1.09 percent), Dino (0.87 %) as well as Orange and LPP growing by less than 0.5 percent PZU presented the results for the first quarter show an increase in revenues by 3.6 percent. rdr. up to PLN 15.91 billion and profit above expectations.
EUROCASHU (-15.27 percent), which occurred after poor results for a quarter, pointed out attention on the wide market. On the other hand, the WSE itself (1.28 percent) reported fantastic results, thanks to which the course improved the annual maxima in the morning. Therefore, our assumptions have been confirmed that the market operator would be an important beneficiary of increased turnover on the stock exchange this year.
Michał Kubicki
