Investors take profits. Red on the Polish stock exchange and base markets, cryptocurrency slaughter
On Thursday, supply prevailed on the Polish stock exchange and on global markets. The red on the WSE indices was accompanied by similar sentiment abroad, a correction in metals and a decisive retreat of cryptocurrencies. The Warsaw Stock Exchange dominated trading in KGHM shares.
On Thursday, February 5, investors on the WSE switched to profit-taking mode. After the records set on Wednesday, the Warsaw Stock Exchange indices retreated. WIG20 lost 2.49% and ended trading at 3,370 points. WIG was depreciated by 2.27%, MWIG40 gave back 1.65% and SWIG80 retreated by 2.04%.
The value of trading on the WSE was summed up on Thursday at PLN 2.69 billion, of which PLN 2.27 billion was generated by trading in shares of companies from the WIG20 index.
Negative sentiment was also present on the core markets, where at At 5 p.m., there was a noticeable sell-off in the S&P500 (-1.44%), Nasdaq Comp (-1.88%), DAX (-0.92%) and CAC40 (-0.70%) indices.
Metals, oil and cryptocurrencies also fell. Bitcoin, which lost its footing at the $70,000 level, collapsed like a stone. When the session ended in Warsaw, the most important cryptocurrency was quoted at $67,000, and Ethereum below $2,000.
At At 17:00 gold was retreating by 2%, but the real decline took place in silver prices, which dropped by as much as 13%. We described the situation on the white metal market in the text “And another silver crash. What happened this time?” Copper lost 1.72%. WTI crude oil fell by 3.32%.
KGHM shares are falling along with silver
The depreciation on metal markets had a negative impact on KGHM shares, which were the most depreciated shares in the WIG20 index on Thursday. The company's quotations fell by 7.10%, with an unusually high turnover value that exceeded PLN 629 million.
Bank shares were also under strong pressure, led by PKO BP (3.29%) and Santander (-3.22%). The WIG-Banki sector index lost 2.54%. Looking at industry benchmarks, only WIG-Paliwa (-3%) and WIG-Górnictwo (-7%) were weaker that day.
During Thursday's conference, NBP President Adam Glapiński did not rule out another cut in interest rates in March. The Monetary Policy Council will then have full data to make such a decision, and current forecasts indicate that inflation will stabilize within the target of the National Bank of Poland.
Orlen shares retreated by 3.18%, which can be seen as healthy profit-taking. Only at the previous session, the company's shares reached the highest valuation in history, exceeding PLN 110 per security.
Dino shares lost 3.17% and have been in a downward trend since the middle of last year. Recently, tensions between the management and employees have escalated in the company. Trade unions complain about low temperatures in stores and request inspections from the General Labor Inspector.
In total, 17 out of 20 companies grouped in the blue chip index ended the February 5 session in red. Against this background, the only green island was the clothing industry. LPP shares gained 0.98% on Thursday. The company presented preliminary financial results for the period from the beginning of November to the end of January.
LPP's revenues were to increase by almost 20% during this time (in constant currencies), and the number of stores increased by 365 new outlets. However, LFL sales in showrooms decreased by 1.6% y/y. In addition to LPP, CCC (+0.14%) and Pepco (+0.36%) also ended the day in positive territory.
Among medium-sized companies from the MWIG40 index, only the WSE ended Thursday's session in positive territory, whose shares gained 1.82%. On the opposite side of the market there were JSW shares, which returned 6.55%.
The Bankier.pl greed and fear index remained in the greed territory. When calculating it, we use 6 different components, including: market strength, momentum, breadth and volatility.
Prepared by MM
