They are coming back from the dead and becoming more expensive at a dizzying pace. Banks lose on the stock market on the day the Monetary Policy Council cuts rates
Despite an attempt to rebound on European and American stock markets, the trading floor in Warsaw was divided on Wednesday. In the WIG20 itself, a large number of companies recorded growth, but the decline in banks' prices on the day of the interest rate cut effectively inhibited demand. Medium-sized companies performed better, while small companies remained slightly positive. However, the ASM Group continues to record huge increases after its shares returned to trading after two years of suspension.
In Europe, the main stock indices were mostly green during the session on November 5. Demand tried to make up for losses after Tuesday, when the global increase in risk aversion brought about a retreat on the most important trading floors. In the US, the Nasdaq fell by over 2%. However, on Wednesday, Wall Street already saw an attempt at a rebound, although only after the opening of spot trading. On the futures market, futures were still in red until the afternoon. Trading in Europe took place in the shadow of the American futures market, and only the upward start of the session turned slight declines into increases in the main indices on the Old Continent.
DAX gained 0.5% at the end of trading on the WSE. CAC40 grew by 0.1%, while the FTSE100 gained over 0.7%, and the main indices in Madrid, Milan, Zurich and Amsterdam were also in green. We cannot include Warsaw in this group, where the main WIG20 lost 0.04%.
The broad WIG was higher by 0.17 percent. The mWIG40 turned out to be the strongest with an increase of 0.89 percent, sWIG80 gained 0.08 percent. However, the low turnover was still disturbing, which was estimated at only PLN 1.19 billion on the broad market, of which PLN 927 million was related to WIG20. In the case of the index of the largest companies, it is less than on Monday (PLN 948 million) and Tuesday (PLN 978.5 million) and the lowest since July 7 (PLN 883 million).
It cannot be denied that the result of Wednesday's session was determined by the weaker attitude of banks on the day of the Monetary Policy Council's decision to cut interest rates again. mBank's share price returned 1.44%. Aliora fell by 1.35%, PKO and Santander each lost 1.23%. These were the four least overvalued stocks in WIG20, but the Pekao price did not avoid declines (-0.44%). However, the Monetary Policy Council's decision was in line with market expectations, so it is difficult to talk about the reaction, because bank prices were falling for most of the day, long before the announcement of the new rate level. Lower rates obviously put pressure on interest income.
The group of discounted largest companies was completed by CD Projekt (-0.91%), Budimex (-0.57%), Kęty (-0.44%) and LPP (-0.03%).
Looking at the other side of the table, we can see the strongest segment on the WSE, which has been the energy sector since the beginning of Wednesday's session. WIG Energia gained 3.90 percent. is at an all-time high. PGE from WIG20 has a large share in this, which increased by 4.23% on Wednesday.
Industry companies from mWIG40 were also strong, including Enea (5.56%) and Tauron (3.56%). Here, the demand could be supported by the excellent estimated results of the Enea Group, which had PLN 747 million of net profit in Q3, with the PAP Biznes consensus assuming jd's net profit of PLN 650 million.
Commercial companies reacted well to reduced interest rates, benefiting from higher disposable income of households. In the afternoon, the Allegro price turned from declines to increases and ended the session by 1.17%. higher. The frog rate was doing well all day and gained 1,890 percent at the end of the session. During the day, the prices of Dino (0.91 porc.) and Pepco (0.11%) recovered from declines, and CCC (0.89%) also ended in positive territory. With regard to the latter, it is worth remembering that Wednesday is the day of announcing MSCI's decision on the revision of index portfolios. There was speculation around CCC that it might fall out of MSCI Poland.
ASM Group's stock stood out the most on the broad market (79.59%). Investors were able to make several transactions today when the price stopped being balanced for a moment around 2:25 p.m. On the so-called forks resulting from the predominance of orders from one side at each price (in this case, buy) has been, with a few exceptions, since last Thursday. During this time, the price gained over 260 percent at the above-mentioned moments.
Let us recall that at the end of October, the Polish Financial Supervision Authority allowed the resumption of trading in ASM Group shares after almost two years of break. ASM is a group of companies dealing with sales support and merchandising, or in simple terms, the arrangement and positioning of products on store shelves.
One of the causes of the company's problems is the conflict of significant shareholders. In 2023 restructuring proceedings were initiated in order to approve the arrangement. The court approved the arrangement only in 2025. In the meantime, trading in shares on the WSE was suspended due to the lack of publication of reports. The company made up for the reporting delays, and the published data show that for several years it has been recording double-digit sales increases on the Polish market, which remains the most important market for the entire group.
MKu
