Despite a slight withdrawal, the WIG20 index remained close to the peak of the bull market after Wednesday's session, and the attention of WSE investors was focused on reports of listed companies. In this matter, the biggest disappointment was the results of XTB, although after the presentation of quarterly reports, the shares of Santander and Żabka also dropped. KGHM's quotations showed strength, following record copper prices.
Wednesday's session, October 29, was stormy and until the very end it was not known whether WIG20 would defend the bullish record set on Tuesday. It started with a new record bull market, after which the WSE blue chip index turned south. He started to make up for his losses only after 2:00 p.m. to break even again at 3:30 p.m. Ultimately, WIG20 retreated by a slight 0.10%, ending trade at 3,038.56 points.
The WIG index lost 0.21% on Wednesday, MWIG40 gave back 0.31%, and SWIG80 was depreciated by 0.29%. The Warsaw Stock Exchange did not stand out particularly compared to Europe, where declines prevailed. After 17:00, the German DAX retreated by 0.64% and the French CAC40 lost 0.28%.
The situation was slightly better in the United States, where markets recorded slight increases in anticipation of a cut in interest rates. The FOMC decision will be announced at 19:00, but investors do not expect any other scenario than a 25 bp cut. At 17:20 the S&P500 and Nasdaq indexes were gaining 0.19% and 0.26%, respectively.
The turnover on the Warsaw Stock Exchange reached PLN 2.38 billion on Wednesday, of which approximately PLN 1.91 billion was accounted for by trading in shares of companies from the WIG20 index. The leaders in terms of turnover were KGHM (PLN 287 million), PKO BP (PLN 243 million), Allegro (PLN 234 million) and XTB (PLN 210 million).
Record-breaking copper and KGHM. Declines after the results of Żabka and Santander
KGHM shares gained 3.06% on Wednesday. The situation on the copper market continues to be an impetus for the mining and metallurgical tycoon's growth. The price of the metal on the London Stock Exchange set its new all-time record on Wednesday, reaching $11,200 per tonne. On that day, an interview between the president of KGHM, Andrzej Szydło, and PAP Biznes was published.
The rebound in CCC shares, which had been hit this month by shorts and accusations from foreign intelligence agencies, observed for several days, continued. The company's shares gained 3.36%, which was the best result among the largest WSE companies. The rate of the three strongest companies from WIG20 was closed by the shares of Orlen, which gained 0.91%.
Despite the presentation of results that beat the consensus both at the level of revenues and net profit, the weakest asset in the WIG20 index on Wednesday were Żabka's shares, which lost 4.95%. In the third quarter, the company generated a net profit of PLN 463 million compared to PLN 319 million profit a year earlier. At the same time, however, the company recorded a slowdown in the growth of LFL (Like-for-Like) sales from 6% a year ago to 4.5%.
The second weakest company in the blue chip index was Dino, whose shares lost 2.05%. The company's price could have been dragged down by Żabka's results. Next on the list of the biggest decliners in WIG20 were Pepco (-1.97%).
Santader shares lost 1.83%. Also in this case, the sell-off occurred after the results were presented and, as in the case of Żabka, it was difficult to understand looking only at revenues and net profit above analysts' expectations. In the case of the bank, investor concern could have been aroused by, among others: commission income lower than expected.
The quotations of the remaining largest Polish banks presented a mixed picture on Wednesday. PKO BP shares lost 0.59%. mBank's price retreated by 0.10%. Pekao and Alior gained 0.20% and 0.55%, respectively. The WIG-Banki index ended the session losing 0.41%.
XTB disappointed with its results, Wawel sweetens investors
Among medium-sized companies, they were mainly in the spotlight on Thursday XTB shares, discounted by 4.21% with very high turnover, which amounted to PLN 210 million. After Wednesday's session, the broker presented results that turned out to be very far from the analysts' consensus. The net profit generated by the company in the last quarter was the weakest since the end of 2022. However, from the operational side, XTB remains strong – in the third quarter, the broker acquired over 220,000. customers.
In the SWIG80 index, Columbus's shares achieved the greatest increase, gaining 5.08%. On Tuesday evening, the company announced that it would postpone the publication of its third quarter report from November 27 to October 30. The quotations of Kogeneracja, which signed a letter of intent with the Wrocław University of Science and Technology regarding cooperation on the Baltic AI Gigafactory project, increased by 4.33%.
The shares of Wawel, which boasted good results for the third quarter, gained 2.33%. The company's revenues increased by 8.4%, EBITDA by 33.5%, and net profit by 42.9% to PLN 47 million. All this despite still relatively high cocoa prices, because the company's stock turnover of beans is approximately one quarter.
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