There are records, but there is nothing to enjoy. Dollar up, WIG20 down, in the worst session since May
Who thought that just reaching an agreement between the USA and the EU is enough to remove the uncertainty factor from the market and let indeks further grow, this one was wrong. The conditions of mutual relations seem to be rewarded with the USA. The dollar has clearly strengthened, and in response to the WSE it passed the worst session since May, although it recorded historical records in the morning.
“We had no choice,” said EU Commissioner for Trade, in a commentary to the EU and USA trade agreement, announced at the weekend. “This is another agreement on American conditions,” commented Pekao analysts. “The risk of escalation of customs duties has ceased to be important, and with this disappear of serious macro problems”- experts told the market. However, there was no relief, because after the upward opening at the stock exchanges in Europe, declines were still dominated.
Dax lost over 1.1 percent in the afternoon They also reduced indexes in Paris, Amsterdam and Milan. London FTSE100 was under the line. Instead, the Wall Street indexes gained, which in the style to which they got used to the market in recent weeks “Drept” north, but in the USA they are relatively satisfied with the EU. The eurodolar dropped by about 0.8 percent, the USD/PLN exchange rate strengthened by over 1.2 percent.
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For WIG20, whose increases this year (and historically) are in a strong correlation with the weakness of the American currency, this has drawn up the implementation of profits. It is so violent because it was made of the summit, where the Blue Chip index was in the morning; recording the level of 2987.08 points and by only 0.4 percent from a psychological and even mythological level of 3000 points (last seen on WIG20 in 2008).
At the end of the day, WIG20 dropped by 1.9 percent, passing the worst session from May 6 this year. He was also the worst of that day in markets in Europe. WIG boasts a Monday historical record (109 323.37 points), after morning growth, but the result of the session is a decrease of 1.63 percent. The same situation took place at mWIG40, where the record in the morning fell at 8148.34 points, but the final at 8000.92 points, which meant a decrease of 1.24 percent. SWIG80 was relatively stronger with a decrease in 0.23 percent, which also improved the historic peak at the first part to 29 623.58 points. Turns in the wide market amounted to PLN 1.45 billion, of which PLN 1.18 billion concerned companies from WIG20.
The discounts in the Blue Chips basket were significant. Budimex (-5.63 percent) gave the most. It is true that the company informed about a coel agreement this time for the construction of the beltway, but investors could frighten the interview of the president for the “parquet”, in which he said that “the price war is getting worse and the situation in the industry begins to destabilize.”
“The situation of construction companies is becoming more and more difficult and increasingly disturbing. In the face of the unused executive potential of the company, the company is aggressive aggressively in tenders, offering prices below investor budgets,” said President Artur Popko in an interview.
CCC shares (-3.98 percent), PGE (-3.71 percent) or DINO (-3.65 percent), i.e. the stars of the stock exchange of recent quarters and even years, lost hard on Monday. In the case of PGE, it is worth recalling a message from before the weekend about the loss of the balance sheet value of selected material assets of PGE Group companies in the amount of approx. PLN 9.1 billion.
Although copper prices were quite stable and even slightly increased, the KGHM exchange rate (-2.91 percent) survived very poorly. The discounts did not bypass banks considered to enter and exit the gates of our foreign capital market. WIG-Banki fell by 2.02 percent PKO and Pekao courses gave 2.45 and 2.42 percent, respectively. Over 2 percent They lost the actions of Żabka, Kęty, Santander and PZU in WIG20. By 1.99 percent Kruk was overestimated, and the least penalty in the basket was -1.16 percent. And it concerned the Pepco course. Only Allegro (0.06 percent) and Orlen (0.61 percent), reflecting after the weakest week from April and with increases by over 2 percent, were in the plus in this segment. oil prices.
In the wide market, it is worth noting strong movements on biotechs such as Pure (28.41 percent), Captor (9.78 percent), Genomtec (6.77 percent), which, however, needs to be read as speculative movements due to the difficult fundamental situation of the above companies.
Under pressure is the Cyfrowy Polsat course (-3.17 percent). The analyst Santander BM, reduced the recommendation for the company's shares is “neutral-short-time sell” with “Better than the market”. The target price is PLN 17.9. The Zygmunt Solorz, removed by children from chairmanship in the supervisory board, is concerned about a decrease in the stock course and takes legal steps to restore supervisory control.
It is worth mentioning the MCI Capital (5.23 percent), which announced the signing of the Private Equity of the preliminary contract for the sale of shares IAI SA net impact on the sale of shares to MCI Capital can be about PLN 469.3 million.
