Declines on world stock exchanges. WIG20 retreat, rally of coal companies and the Biedronka effect
On Thursday, the Warsaw Stock Exchange did not stand out from the rest of the world's trading floors, which plunged into declines. Oil prices were rising and the threat to tankers in the Persian Gulf was not decreasing. In WIG20, KGHM and Dino competed for the title of the most discounted company. Only two blue chips ended the session with a slight gain. However, the prices of coal companies rose significantly.
The war in the Middle East shapes the behavior of markets
After the Fed maintained interest rates on Wednesday, investors' eyes turned again to the Middle East on Thursday. The US-Israeli war with Iran appears no closer to ending. As reported by the Financial Times, citing Western and Iranian officials, the Islamic Republic does not intend to lay down its weapons at this time. There are no diplomatic moves on either side.
– We need guarantees and we will not withdraw, even if the war lasts a year – an Iranian close to the regime commented for “FT” – If Iran is destroyed, the entire region will be destroyed.
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Before noon, oil prices jumped to $118. per barrel. All major stock indices from Asia ended the session well below the mark. The Hang Seng lost 2.02 percent, the Kospi gave up 2.73 percent and the Nikkei retreated 3.38 percent.
In the afternoon, Brent crude oil prices fell by over $6. per barrel after the US Treasury Secretary's speech on Fox Business. Scott Bessent suggested that the United States could release more oil from its strategic reserves or lift sanctions on Iranian oil stored on ships.
In addition, the leaders of Great Britain, France, Germany, Italy, the Netherlands and Japan declared their willingness to take part in activities aimed at securing the passage through the Strait of Hormuz. When the session ended in Warsaw, a barrel of Brent crude oil cost $110.41.
Declines on stock exchanges in Europe, declines in Warsaw
The situation in the Middle East had an impact on stock exchange prices. On Thursday, the benchmarks of almost all global stock exchanges fell. The German DAX lost 2.53%, the French CAC40 fell by 1.76% and the British FTSE fell by 2.29%. Okay. time. At 17:00 we could observe mixed behavior of the American indices: the S&P500 was losing 0.5%, and the Nasdaq was gaining 0.67%.
WIG20 recorded its second declining session in a row, erasing Tuesday's gains. The WSE blue chip index lost 1.85% on Thursday.and WIG retreated by 1.72%. The declines also affected medium-sized and smaller companies. MWIG40 gave up 1.39%, and SWIG80 went down by 1.58%.
The turnover on the WSE broad market was estimated at just over PLN 3 billion. Trading in shares of WIG20 index companies accounted for PLN 2.57 billion of this amount. The turnover of Orlen alone amounted to PLN 443 million.
Dino strangled by Biedronka, KGHM with the ballast of silver and copper prices
After Wednesday's session on the Portuguese stock exchange, Jeronimo Martins, the owner of the Biedronka chain, reported. As happened many times in the past, now the competitor's results have had a negative impact on Dino's share price (-6.33%). The company's shares were on Thursday the most depreciated stock in WIG20.
KGHM shares also had a bad session (-5.15%). Copper and silver prices reached their lowest levels since the beginning of the year on Thursday. The price of the first raw material dropped below $12,000 for a moment. per ton. Thursday's low on silver was $65.8. per ounce, and hours 17:00 gold's poorer cousin was trading at $69.65, losing 11%.
Pepco (-4.84%) and LPP (-3.11%) lost significantly. Above 2 percent The shares of Alior Bank (-2.62%), Kruk (-2.28%), PGE (-2.25%) and Budimex (2.05%) went down. After Thursday's session, Żabka (-1.13%) and CD Projekt (-1.68%) were to report their results.
Only two companies from the WIG20 index ended the session just above the mark: mBank and Orlen, which gained 0.05% each.
A spike in coal quotations of WSE listed companies
Shares of companies related to coal mining were on the attack on Thursday. Bogdanka's securities increased in price by as much as 13.69%. By 7.89 percent JSW shares went up. 12.38 percent Bumech gained. Coal prices on world markets skyrocketed after the attack on Iran.
The growth impulse for the sector was also provided by the Minister of State Assets, Wojciech Balczun, who said on Thursday that the government was working on a solution to help JSW stabilize its financial situation. The minister added that his ministry also intends to present the idea of systemic solutions for the entire mining sector.
Despite the rally in most mining companies, the scale of KGHM's share in the WIG-Górnictwo benchmark made it the most devalued sector index on Thursday, losing 4.42%.
The energy sector also lost significantly the next day (-2.96%), and the third sector index in terms of percentage reduction was WIG-Odzież (-2.78%). Only WIG-Chemia (+1.14%) and WIG-Paliwa (+0.06%) ended the session in positive territory.
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