Dziady brought declines on the WSE. WIG20 did not defend 3,000 points.

The last stock exchange session in October brought a continuation of declines on the Warsaw Stock Exchange after WIG and WIG20 set new bullish peaks in mid-week. The signal to retreat was given by banks whose sector index clearly lagged behind the rest of the market.

WIG recorded a decline of 1.08% with a turnover of PLN 1.8 billion. WIG20 decreased by 1.39% and ended the month at 2,987.33 points.

Although it was the second declining session in a row for the WSE's flagship index, the entire month of October was rather successful. During the month, WIG20 gained nearly 6%, setting a 14-year maximum of 3,060.11 points on Wednesday.

But on Friday, banks went into reverse. Shares of mBnak and Santander were depreciated by over 3%. The prices of PKO BP and Pekao also dropped by approximately 2%. And this despite the fact that the latter day earlier showed very solid results for the third quarter. But the worst performance in WIG20 was the Kruk stock, which dropped by 5.1%. Only Allegro securities ended the day in positive territory (+0.1%).

It was clearly calmer in the so-called second line. mWIG40 lost 0.42%, and yet two sessions ago it also set a new all-time record. sWIG80 even managed to gain a cosmetic 0.06%. Among the sectoral indices, WIG-Banki performed the weakest, losing 2.08%. WIG-Informatyka (-1.92%) was not much better, weighed down by the 3.3% decline in Asseco Poland's shares.

It is possible that the October CPI inflation data published this morning was responsible for the relative weakness of the banking sector. According to preliminary estimates of the Central Statistical Office, it turned out to be slightly lower than economists' expectations, which may seal the November decision of the Monetary Policy Council to reduce interest rates again. And although banks are well prepared for a drop in loan prices, in the long run, lower rates at the National Bank of Poland will probably translate into lower interest income (although the interest margin itself does not necessarily have to decline).

It must also be admitted that the mood on the main European stock exchanges was rather negative. The main indices in London, Frankfurt and Paris lost approximately 0.5%. However, Friday's session on Wall Street started with gains. This is the result of Amazon's dramatic reaction to better-than-expected quarterly results. At the beginning of Friday's session on Wall Street, Amazon shares gained 11%.

K.K

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