Tuesday's session on the Warsaw Stock Exchange was marked by new bull market records. Although there were signs of profit-taking on KGHM on the horizon, the role of the leader of the herd of the largest companies was taken over by the banking sector, and the role of the leader of growth in WIG20 was taken by the largest Polish bank. PKO is in a valuation race with Orlen.
The sentiment on the stock markets remained positive, with gains prevailing on the main indices in Europe and the US. All the more so because the macroeconomic calendar did not include any important readings, and investors adopted a waiting mode for Wednesday's Fed meeting and the decision on interest rates. Trading on the WSE was spent breaking the bullish records of the main indices and the WIG-Banki industry index.
It was less calm on the metals market, where silver has experienced a strong correction in recent hours, with even stronger increases. This was reflected in the price of KGHM, whose quotations in recent days, as the second largest producer of this metal in the world, are closely correlated with speculation on the silver market.
Session results on the WSE
WIG20 gained 0.28 percent, but the broad market looked better, as WIG climbed up by 0.45 percent and during the day reached a record 125,446.40 points. WIG20, in turn, improved the bullish record, which now stands at 3,391.79 points. About 16% remains from current levels to the historic peak. Medium and small companies showed the greatest dynamics on Tuesday, which translated into a 1.02% increase in mWIG40, while sWIG80 increased by 1.12%. Both indexes improved their historical highs during the day, reaching 8,916.48 points and 31,790.47 points, respectively. The turnover on the broad market amounted to PLN 2.81 billion, of which PLN 2.43 billion concerned WIG20 companies.
The strong opening of the year is not a coincidence. As analysts emphasize, the Polish stock exchange benefits from a unique combination of favorable macroeconomic and geopolitical factors. Mariusz Adamiak, director of the market strategies office of PKO BP, in an interview with PAP Biznes, indicates that January promises to be another phenomenal month with a 6%. growth after an almost 50% increase in WIG last year.
– Several things help with this, certainly good forecasts for the Polish economy. The increase should be between 3.5%. and 4 percent, which should have a positive impact on companies' profits,” Mariusz Adamiak, director of the market strategies office of PKO BP, told PAP Biznes. – says Mariusz Adamiak.
Banks are writing history, PKO is chasing Orlen
The highlight of the session was the unprecedented strength of the financial sector. The WIG Banki index, which broke the 20,000-point barrier for the first time in history on Monday, continued its rally on Tuesday, reaching the level of 20,614.63 points. At the end of the day, the strongest industry index gained 2.38%. The growth leaders were Santander Bank Polska (2.19%) and, above all, PKO BP, which gained 2.38%. and valuation of PLN 115.9 billion.
PKO is chasing Orlen's stock exchange valuation, which is currently the most expensive Polish company on the Warsaw Stock Exchange. The fuel giant's price gained 1.21% on Tuesday. to PLN 103.98 per share, which valued Orlen at PLN 120.7 billion.
KGHM fell in price the most since April 2025.
KGHM was at the opposite extreme in WIG20. The copper giant, which was at the top of the session on Monday with an increase of over 8 percent, lost 6.69 percent on Tuesday, which was the largest decline in KGHM's share price since April 4 last year, when markets reacted to the tariffs announced by President Donald Trump. The depreciation on Tuesday, January 27, was a direct reaction to the cooling of moods on the commodity market in London, where copper fell by 1.8% and silver dropped by over 6%.
However, it should be remembered that the foundations of the Lublin company remain strong. Copper, despite Tuesday's correction, costs over USD 13,000 per tonne, which is close to all-time records, and silver is still valued above USD 100. Additionally, KGHM announced that the production of copper and precious metals in 2025 was above budget assumptions, which should stabilize the exchange rate in the longer term.
Apart from the copper (and silver) giant, CCC (-3.13%) and Dino (-1.3%) also performed poorly in WIG20, where the dispute between the supermarket chain's employees and the management is becoming very loud in the media and is becoming more and more interesting for investors wondering whether solving employee problems will cost the company a lot.
Geopolitical thaw and suspended talks at JSW
JSW (-1.68%) has its problems with workshops, or rather with the level of their costs, where another round of talks between the management board and the social side was to be held on Tuesday. However, the JSW Management Board suspended the talks due to a significant change in the negotiating position by the social side. Tuesday's statements by the Speaker of the Sejm, Włodzimierz Czarzasty, were said to have contributed to a change in the unions' position.
Investors are also looking at information regarding the conflict in Ukraine. Timid announcements of a rapprochement of positions between Russia and the US raise hopes for a potential ceasefire, which may be the reason for the excellent attitude of the broad market since the beginning of the year. In this context, it is worth observing the quotations of Ukrainian companies listed on the WSE. On Tuesday, the Milkiland exchange rate stood out (7.07%), but the entire WIG-Ukraine fell by 0.42%.
Among the broad market, Polimex Mostostal deserves distinction. The company gained 4.63% today. after the PGE Group selected a consortium with its participation and Siemens Energy to build strategic gas units in Rybnik and Gryfino with a total capacity of 1,200 MW. It is worth noting the return to growth in the price of Medinice (7.59%), which has doubled its market value since January 19. Investors enthusiastically received the information about the submission of a package of documents to the American FDA for the CoolCryo system and the signing of a letter of intent for the sale of this project.
In turn, the Eurocash exchange rate gained only 0.37% after the favorable judgment of the Court of Appeal, which dismissed the multi-million fine of the Office of Competition and Consumer Protection. which confirms the terrible sentiment towards the company, where even very positive information goes unnoticed.
