The market upheaval spoiled the day on the WSE. WIG20 fell from the peak of the bull market

Until about 3:50 p.m. everything looked beautiful. But a disastrous opening on Wall Street wiped out gold and silver prices. Share prices on the WSE also followed metals, although previously WIG was the best stock index in Europe.

It was an exciting session. It started, as usual, in recent days with a crazy increase in the prices of precious metals. The gold rate reached almost USD 5,600/oz, and silver was valued at over USD 120/oz. The rising prices of copper and silver caused the KGHM share price to skyrocket, setting a new all-time record of PLN 396.40. There was even a valuation on the market (using the comparative method) of PLN 540.

Powered by KGHM fuel, WIG20 increased by as much as 1.8% at the best moment of the day, reaching 3,455 points and recording the highest value since January 2008. Another all-time record in a row was broken by WIG, mWIG and sWIG. Just before 4 p.m. WIG was the strongest stock index in Europe (not counting Moscow and Istanbul).

But with just an hour before the end of trading, everything went wrong. The signal to retreat came from Wall Street, where the massive (almost -12%) depreciation of Microsoft's shares plunged technology companies and shook the New York stock exchanges. As trading ended on the WSE, the Nasdaq was down 2.5% and the S&P500 was down 1.5%. Prices of bitcoin (-5.5%), gold (-2.7%) and silver (-3.8%) also began to fall very quickly. It is worth adding that both metals were gaining several percent after 3 p.m.

As a result, solid increases on the WSE quickly turned into declines. Ultimately, WIG20 lost 0.35% and ended Thursday's session at 3,381.38 points. WIG gave up 0.45% and finished with a score of 124,997.21 points. mWIG40 lost over 0.9%, and sWIG80 dropped by 0.3%. All this happened with high turnover, which was estimated at almost PLN 3.4 billion on the main market.

Among the 20 blue chips, KGHM's share price defended well and increased by 5.4%. But we must take into account the fact that during the session the shares of the copper plant gained over 12%, only to fall from PLN 396 to PLN 372 in the last hour of trading. The shares of Orlen (1.5%), PGE (1%) and Budimex ended the day on a positive note. The remaining 16 components of WIG 20 turned red. The worst performer was CCC securities, which were depreciated by 5.6% after the publication of poor quarterly results.

The price of Bumech dropped by over 7%, which apparently was not helped by the news about the 3-year lease of PG Silesia. On the opposite side of the market, DataWalk shares rose by 6.3% and were the most expensive since September 2022. Since the beginning of January, the price of the Wrocław-based company has increased by 58%.

K.K

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