WSE session on October 20: WIG20 is the highest since the holidays. Orlen is already worth almost PLN 107 billion
Optimism around the US-China agreement has spread to global stock markets. The domestic indices benefited from this and ended the session with strong increases. In WIG20, attention was drawn to the several percent increases of national champions from the energy, fuel and mining sectors. Orlen's share price was the highest this year, valuing the company at nearly PLN 107 billion.
The mood improved as the chances for a US-China agreement increased after the weekend comments by Scott Bessent and Donald Trump. The US president expressed optimism that the upcoming talks with China would bring an agreement. Meanwhile, the Chinese GDP data released today were in line with forecasts. The good market sentiment could have been boosted by The Wall Street Journal's article that President Donald Trump has exempted dozens of products from tariffs in recent weeks, and his administration is considering exempting hundreds more goods.
Session results on stock markets
Stock markets rose from Asia, where Nikkei gained 3.37 percent, KOSPI 1.76 percent, HangSeng 2.42 percent, through Europe with DAX increases by 1.7 percent, EuroStoxx50 by 1.3 percent, to the USA, where the S&P500 gained 1 percent at the end of trading in Warsaw, and by 1.35 percent. Nasdaq was rising.
On the WSE, WIG20 gained 1.55% at the end of the session, with a clear advantage in demand throughout the session and is already the highest since the end of August. WIG was 1.72% higher on Monday, and the better attitude of the broad market resulted from the increase in mWIG40 by 2.54%. Smaller companies were weaker this time, with sWIG80 gaining 0.76%. The turnover on the broad market amounted to PLN 1.61 billion, of which PLN 1.32 billion concerned WIG20 companies.
Strong growth of WIG20 companies
Investors' optimism was not disturbed by data from the Polish economy, where industrial production was a very positive surprise, and data from the labor market turned out to be in line with recovery. Demand for shares of the largest companies today was focused on shares of national champions. By 1.56 percent with PLN 165 million in turnover, the shares of PKO BP increased in price. Over PLN 251 million were exchanged for Orlen shares, the price of which increased by 3.65%. and is at the level of PLN 92.09, valuing the entire company at a record PLN 106.8 billion. The price is the highest since November 2019 and this year's rate of return is already 110%, plus PLN 6 gross dividend per share deducted from the price.
By 3.38 percent KGHM shares increased in price, with a turnover of PLN 161.8 million, benefiting from increases in copper and silver prices. The price is the highest since mid-2021. In turn, the shares of another champion – PGE – increased the most. The share price of the largest energy company gained 4.04% on Monday. Other companies from the state-controlled sector rose even more in price. Shares of Tauron and Enea listed in mWIG20 increased by 6.09%, respectively. and 6.01 percent
Banks were also strong in WIG20, with mBank gaining the most (3.58%). Capital could flow into the sector after the sell-off on the French stock exchange, where the BNP Paribas price lost about 9%. following reports that the bank lost the court case and may face several billion dollars in fines. Apart from mBank, in WIG20 the price of Santander gained 1.91%, and Pekao – 0.92%. The LPP exchange rate was neutral.
In total, only two companies were below the line in the blue chip index: CD Projekt (-1.44%) and CCC (-0.58%). Trading in the shares of the footwear company has been at an elevated level since last week's accusations from the analytical company NINGI Research, which accused CCC of accounting manipulations and took a short position on the shares of the Polish company.
JSW and Huuuge are leaders in mWIG40
From the broader market, it is worth paying attention to the growth of JSW (8.62%) from mWIG40. The Minister of State Assets said that the government's goal is to include JSW in the supply chain, mainly by supplying coking coal to Huta Częstochowa.
In turn, Huuuge shares (6.5%) gained after the information that the average reduction rate of submitted sales offers for Huuuge shares was 57.04%, and the company will purchase 15,237,864 of its own shares as part of the purchase. Boryszew (2.7%) and the Air Force Institute of Technology (ITWL) concluded a conditional agreement under which ITWL purchased 52% from Boryszew. shares in the special purpose vehicle Hornet – Polskie Drony. Creotech Instruments (0.27%) signed a cooperation agreement with the Spanish company Satlantis, which specializes in the design and production of high-resolution advanced optical solutions for the space sector.
Michal Kubicki
