The decline on the WSE has stopped. Orlen with record capitalization, KGHM's price is incredibly calm
Although the main indices managed to stay above the line and the bulls tried to stabilize after Thursday's sell-off, the session did not show a great willingness to buy the lows, which we have seen quite often recently. WIG20 was weaker than the main indices in Europe and did not benefit much from a change in sentiment on Wall Street, where the beginning of the session brought a clear rebound. Attention was focused on the new record-breaking boom in Orlen's share price and the significant decline in CD Projekt's shares. The KGHM stock recorded the calmest session in over two weeks.
At the close of quotations, WIG20 gained 0.64%, reaching 3,392.41 points. Up 0.5 percent the broad WIG index also went up (125,314.78 points). Smaller entities fared worse – mWIG40 recorded a symbolic increase of 0.2%. to 8,905.51 points, while sWIG80 was depreciated by 0.04 percent, ending the week at 30,931.37 points. The turnover on the broad market amounted to PLN 2.23 billion, of which PLN 1.83 billion concerned WIG20 companies.
The atmosphere on Książęca was much more subdued than on stock exchanges in Europe, where DAX gained around 1 percent, IBEX35 over 1.1 percent, and EuroStoxx50 1.2 percent. The stock exchanges in Paris and Milan performed slightly worse, affected by the crash of Stellantis shares. The sentiment on Wall Street looked quite good, with the indexes rebounding by over 1% after several days of declines. Due to the short shutdown of the US federal government (now completed), a key report from the US labor market was not released.
Technological skepticism
The IT sector and game producers remained a burden on the market. Investors around the world, including Poland, are watching the progress of artificial intelligence with growing concern. The premiere of Project Genie from Google, capable of generating interactive worlds based on simple commands, is slowly becoming a symbol of the black swan of the gamedev industry. In turn, for the IT industry, concerns were heightened by Anthropic's release of a plug-in for their Claude Cowork, which analysts believe could revolutionize the software industry around the world.
“The software sector may come under pressure from 'new AI skills', which may impact the business models of many SaaS companies. The weakness of the software sector has been visible for many weeks and is global,” DM XTB analysts said in a comment.
But sentiment towards the broader technology sector has been weaker overall for a long time. Even Microsoft's solid results were met with a lukewarm reception, which exposed growing skepticism about the profitability of gigantic spending on AI infrastructure (data centers) in relation to the dynamics of revenues from this segment. “There is growing skepticism among investors regarding further increases in expenditure on the expansion of infrastructure for AI development (e.g. construction of data centers) while at the same time there is no acceleration in the dynamics of revenues from this segment,” said Arkadiusz Banaś, an expert at Alior Bank.
Against this background, WIG-Gry gave up 2.82%. and it was the weakest sector index on the WSE on Friday. CD Projekt's price was definitely the most negative (-3.61%), and in the six previous sessions it recorded only one increase. On Friday, it was the weakest stock in WIG20.
Among the 8 companies in the WIG20 that were depreciated, Żabka lost significantly (2.88%). Budimex shares fell by 1.5%, and Alior shares by 1%. The shares of Santander, Pepco, PGE and Allegro were still below the line in this group, but the declines there were up to a maximum of 0.65%.
Orlen at annual highs, CCC with a rebound, KGHM with peace of mind
Orlen stood out positively from the blue chip index, gaining approximately 3.5%. up to PLN 110.74. During the session, the price for the giant's shares was as high as PLN 111, which is a new annual maximum. The company was valued at PLN 128.4 billion. The company from Płock successfully made up for Thursday's loss, continuing the upward trend that has been going on for a month. Since the beginning of the year, Orlen's share price has increased by over 15%.
Until the afternoon, the situation of CCC also looked bad, where the rate continued to lose, setting at least a yearly low of PLN 106.10. However, in the last two sessions of the session there was a dynamic rebound to PLN 117.45, which resulted in the price ending the session with an increase of 5.62%. – the largest in WIG20.
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KGHM, it is worth paying attention to the change in the price of KGHM shares, which gained 0.26%. This was therefore the most pleasant change in the company's price since January 21, i.e. over two weeks. During this time, the price of the company, whose name comes from the historical name of the Copper Mining and Smelting Plant, experienced enormous volatility following events on the silver market. Silver fell by about 1.8% in the afternoon on Friday. reducing morning losses, while copper prices increased.
Rollercoaster on JSW shares
Real emotions accompanied JSW's quotations with mWIG40. The company, which has lost nearly a quarter of its value in recent days, started the day with an impressive 8% rebound. Hopes were raised by the news of an agreement with trade unions. However, the euphoria did not last long. When the company clarified that it was in talks to obtain new funds in the amount of as much as PLN 2.9 billion, which highlighted the scale of liquidity problems, the share price plummeted. Ultimately, the shares of the Jastrzębie-based company ended the day with a gain of 3.72%, but far from the morning enthusiasm.
