Orlen and PLN 115 billion for the first time. Attack on the top of the bull market and the WIG record
High opening and slow relinquishment of the supply field, this is briefly the course of the WIG20 session. Although the beginning of the session announced an attack on the August peak of the bull market, the close was below the mark. However, during the day the profitable WIG improved its historical peak. When looking at companies, it is worth noting Orlen's record capitalization.
“From Asian shares to bitcoin, oil and futures contracts on American indices – the markets woke up on Monday with a clear upward trend, after the weekend reports about a possible breakthrough in the negotiations between Washington and Beijing,” wrote Michał Misiura on the occasion of Monday's report on the opening of the stock markets.
The agency's cables reported that US Treasury Secretary Scott Bessent said that the preparatory talks between the US and Chinese delegations in Malaysia created a “very good framework” for concluding a trade agreement during the meeting between President Donald Trump and Chinese leader Xi Jinping, which could take place on Thursday. “I have great respect for President Xi and I think we will reach an agreement,” Trump told reporters on Air Force One.
Enthusiasm was visible on the WSE, where trading on the WIG20 began with an increase of over 0.9%. to the level of 3014 points. From there it was less than 0.6%. to the August record bull market on WIG20. However, the high opening turned out to be all the bulls could do that day. For the rest of the day, WIG20 continued to gain in the morning, and for a moment it was even below the line.
Ultimately, the WIG20 session ended by only 0.01%. below, but taking into account the course of the session, it can be saved to a bear account. However, before supply took the initiative, WIG achieved a historic record by climbing to 112,481.30 points. Ultimately, WIG gained 0.17 percent at the end of the day. up to 111,613.44 points In turn, mWIG40 was higher by 0.76 percent, and sWIG80 increased by 0.15 percent. The turnover on the broad market amounted to PLN 1.755 billion, of which PLN 1.52 billion concerned WIG20.
In Europe, when the session in Warsaw was coming to an end, the main indices were also within reference limits. DAX and CAC40 gained about 0.05% each, EuroStoxx50 grew by 0.5% and by 0.1%. the FTSE100 was below the line. On Wall Street this week, trading from 2:30 p.m. to 9:00 p.m. Polish time (time change postponed by a week), there were clear increases: the S&P500 grew by 0.9%, the Nasdaq by over 1.5%.
“Already on Friday, we saw new highs, where the impulse came from Wall Street. Lower-than-expected inflation data appeared in the United States, and the earnings season over the last two weeks has been surprising very positively, so the end of last week was in a very good mood. Over the weekend, there were optimistic reports in the context of US-Chinese trade talks, which at the beginning week brings the indices to higher and higher levels,” Rafał Sadoch, an analyst at mBank BM, told PAP Biznes.
“We are on the threshold of publishing the results of the most important companies. On Wednesday, the US Federal Reserve will cut interest rates. Therefore, the demand for risky assets may still persist. It seems that the end of October will pass in good moods, so further increases in indices in such an environment should not surprise anyone,” he added.
In WIG20, Orlen's price attracted attention again, which reached PLN 99.60 per share around noon, the highest level since November 2019. Before the company absorbed Energa, Lotos and PGNiG. The issues carried out during the merger increased the number of shares, so that at the above-mentioned price, Orlen's capitalization exceeded PLN 115.6 billion and was the highest in history, even though the peak of the price is approximately PLN 35 higher at PLN 134.45. As the debate at the Bankier.pl Finance Forum showed, Orlen is particularly popular among foreign investment funds. Due to its sector diversification, dividend policy and dynamic results, the company can be perceived as an attractive quasi ETF for the Polish energy industry. Ultimately, on Monday, Orlen's share price gained 0.26%. ending trade at PLN 97.90 and a valuation of PLN 113.66 billion.
There were 10 other blue-chip companies in the black, of which the shares of Grupa Kęty (2.21%), PGE (1.57%) and mBank (1.3%) gained the most. Over 1 percent Orane and Budimex also gained. The most negative shares were Pepco (-1.86%), CD Projekt (-1.81%) and KGHM (-1.05%). In less than 1 percent the shares of CCC, PKO, Allegro, Santander, Żabka and Dino decreased.
Shares of Cognor Holding fell on the broad market (-5.41%), which intends to issue a total of up to 60 million shares, excluding the pre-emptive rights of existing shareholders. Scope Fluidics also announced a new surprising issue (-13.82%), which made it the most declining company on the broad market. In turn, Captora Therapeutics (4.47%) signed an agreement with the European Innovation Council and the Executive Agency for SMEs for the implementation and co-financing of the CT-03 project.
Michal Kubicki
