The WIG broad market index ended Thursday's session on the WSE with a decline of 0.45%. In turn, the WIG20 index, which includes the 20 largest companies on the Warsaw Stock Exchange, lost 0.35%. KGHM stands out clearly against this background – the stock of the state-owned company increased by 5.44% at closing on Thursday.
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On Thursday, KGHM was not only the strongest company in WIG20 (most of which saw declines), but also one of the strongest on the entire broad market. This is another strong increase in the price of KGHM. Over the last five days, the company has gained 18%.
On Thursday, the state giant also records the highest turnover – it amounts to over PLN 765 million, compared to less than PLN 2 billion in turnover on shares of all blue chips.
The closing price of KGHM was PLN 371.9. The company's stock is rising thanks to increases in copper and silver prices.
KGHM exchange rate over the last 10 days:
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Why is silver more expensive? Raw materials rally
“There is a visible move towards raw materials on the market, the question is what are the reasons for this. On the one hand, it is said to be an effect of a weaker dollar, but there may also be a speculative factor in it. When we look at the fundamentals, I have the impression that the scale of increases we have seen in silver in recent weeks is speculation that is starting to spread,” Konrad Ryczko, broker and analyst at DM BOŚ, told PAP Biznes.
He estimates that silver has partially followed gold, which has been breaking records recently. “Besides, it (silver – ed.) has some industrial importance, but these recent increases are not a matter of fundamentals. Within a few weeks, silver has increased by several dozen percent, and nothing has changed fundamentally,” he added.
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KGHM. What kind of company is this?
KGHM is engaged in the extraction and processing of natural raw materials. The heart of the company is the largest deposit in Europe copper ore located in southwestern Poland. KGHM is also a producer of silver and, in smaller quantities, gold.
KGHM has production plants on three continents: Europe, North and South America. The global copper resources controlled by KGHM amount to 40 million tons. The company employs over 35,000 people. people.
Source: PAP Biznes, stooq, Business Insider Polska
