The last stock week of the month and quarter began with a discount on the Polish stock exchange, provoked by a thickening atmosphere in the Middle East. WIG20 was the weakest main index in Europe, which, however, according to an analyst can be a derivative of the relative strength of the national stock exchange in the previous months, after which the time came to realize profits during increased uncertainty.
WIG20 fell on Monday by 1.6 percent. And on Monday he was the weakest index in Europe, before the Blue Chip Indexes from the exchanges in Copenhagen (-1.56 percent) and Budapest (-1.42 percent). WIG was lower by 1.42 percent and is on 98 984.52 points In turn, MWIG40 finished the session at 7 508.08 points after a drop in 1.06 percent. SWIG80 (-1.62 percent), which is listed at 28 209.51 points. The rotation in the wide market amounted to almost PLN 1.406 billion, of which nearly PLN 1.15 billion concerned companies from WIG20.
Iran was bombed by the United States on the weekend almost equally five months after Donald Trump's swearing in to the US president. After the attack, the Persians threatened with retaliation and blockade of the Strait of the Ormuz, a key on the trade route of energy raw materials.
The reaction of the markets to the new chapter of the war in the Middle East was similar to the one from previous weeks, when Israel's and more bold attacks on Iran and retaliation were affected primarily on the oil market. The further increase in the risk version, however, resulted in a advantage of supply on stock markets in Europe, which lasted for most of the day. When the Americans entered the game, it was obvious that they wanted to pass by weekend events indifferently, which was already indicated by contracts on the term market.
Indexes for Wall Street opened at a neutral level, but at the end of the Sesia in Warsaw S&P and NASDAQ have already gained over 0.5 percent. The quotations in Europe have improved, which in the morning got a reading of the June not very optimistic PMI indicators. PMI readings in the US were better, which could be behind the increases in the first phase of the session next to the statements of the Fed members with possible cutting of the federal reserve feet in July.
On the WSE WIG20 also in the second part of the day he tried to move away from daily minima, and at the same time fight to maintain a level of 2,700 points, which in recent weeks was a place to balance the power and supply forces. Even 40 minutes before the end of the session, the index was above, but ultimately the supply tilted the scales in its favor, so the index for the second time from the half of April closed below this level. When he did so for the first time on June 6, in the next 2 sessions he bounced over 100 points.
“What the markets can react to is the answer from Iran and the issues related to the pressure of the ORMUZ. If its blockage came to fruition, it would potentially be a reaction to oil,” said Konrad Ryczko, a broker and DM BOŚ analyst in a commentary for PAP for PAP.
“We have relatively poorly with us today. The market in Poland has begun a bit, it is one of the weakest in Europe. (…) It seems to me that it is a derivative that we were one of the best markets so that this possibly the implementation of profits during the period of high risk is not a special surprise for me” – said the analyst.
In WIG20, the declines were quite wide and covered the courses of 16 companies. Limiting exposure to our market by foreign investors is usually made through banks shares, which were on Monday after pressure. The increase in oil prices in global markets, although it threatens higher inflation, but in the morning data from the Polish economy showed, suggesting a lower internal inflation pressure, like a lower increase in salaries, less employment. In addition, the data from the industry did not impress and were lower than expectations.
The Pekao exchange rate dropped by 2.93 percent, Alior reduced by 3.47 percent, and mBank by as much as 3.69 percent. Looking more broadly at the financial sector from WIG20, he also strongly disconnected the Kruka exchange rate (-3.8 percent). The ordinary general meeting of the Raven decided to pay PLN 18 dividend on the share of profit achieved in 2024. The Żabka (-3.12 percent) was bright.
Clearly, decreases dominated in the entire Blue Chip portfolio well over 2 percent. They also gave the qualities of Budimex, PKO, Kęty and LPP. Santander's course dropped by 2.31 percent The shares of the other largest companies were under a line of at least 1 percent. except for Orange (-0.29 percent).
Again, the qualities of Orlen (0.51 percent), screwing a few years old, were above. The CD Projekt shares (0.33 percent), which decided to dividend and a small purchase of own shares for the needs of the motivational program, as well as PGE shares (1.51 percent) and Pepco (2.15 percent). In relation to the latter, JP Morgan raised the target price from 22.50 to 25.10 PLN for shares and upheld the recommendation “overdo it”.
On the wide market, it is worth paying attention to the ML System exchange rate (13.25 percent), which has gained after information about a new order from the BPIV segment in Greece. In addition, ASBIS (8.18 percent) boasted great May data (8.18 percent). At the second pole there was a PCF Group course, which reacted to information about the sale of the company's shares by one of the main shareholders and descent below the 5 % threshold. in the shareholding.
Michał Kubicki
