The chance of transit through Hormuz improved the mood. A quick change in sentiment on the stock exchanges
Thursday's session on the Warsaw Stock Exchange was marked by high volatility and a tense atmosphere on the commodity markets. Although the morning brought a clear advantage for the bears, the afternoon optimism helped the domestic indices to break even. It was allegedly based on reports about talks between Iran and Oman regarding transit through the Strait of Hormuz. Previously, investors had to face a sharp jump in oil prices and the prospect of a long weekend, which will start tomorrow in most global markets.
Ultimately, the index WIG20 increased by 0.0% and, next to the Slovak SAX index, it was the strongest in Europe that day. The Polish blue chip index increased on a similar scale to the Turkish BIST, and this may support the thesis of a return to the game according to the pre-war scenario, i.e. capital inflow to emerging markets.
However, the sentiment on Thursday afternoon generally improved. Suffice it to say that at one point the Nasdaq gained over 2%. discount. It looks like investors are betting on the end of the war, which is basically what they are doing despite what President Trump has been saying recently. There were suggestions that the increases were the result of reports by Iranian state media that Iran was cooperating with Oman. on the Protocol for Vessels Passing through the Strait of Hormuz.
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“Iran and Oman are developing a protocol to 'monitor transit' through the Strait of Hormuz, Iran's state news agency IRNA reported on Thursday morning,” the cables reported.
According to the report, Iranian official Kazem Gharibabadi said that ship traffic on the key global oil transit route “should be supervised and coordinated” by both countries, CNBC reported.
Let us recall that Tuesday's announcement of aggressive US actions against Iran during his address to the nation pushed oil prices up by over 10 percent, hence the morning on the stock markets was marked by a wide decline and subsequent recovery of losses, which accelerated when Wall Street investors started buying up the lows. On Thursday we have the last session of the week. On the occasion of Good Friday, all important stock exchanges in Western countries will be closed. There will be no trade, among others: on the WSE, NYSE, Nasdaqu, LSE or Frankfurt.
Coming back to the WSE, broad WIG gained 0.83%reaching a ceiling of 124,289 points. Smaller entities did well – the mid-cap index mWIG40 gained 0.84%But sWIG80 fell slightly by 0.09%although it also made up for most of the declines recorded during the day. The turnover on the broad market amounted to PLN 2.02 billion, of which almost PLN 1.64 billion concerned WIG20 companies.
Energy and Orlen are driving the WSE up
The strongest link in today's session was the energy sector. The WIG-Energy index excelled thanks to increases in the prices of such giants as PGE (4.46%) and Tauron (4.3%). He also had a very strong session Orlen (2.6%) responsible for WIG-Paliwa (2.58%)which became the main driver of growth in the blue chip portfolio. There would be no increase in WIG20 without improved quotations on banks, which turned declines into increases at the end of the session. The entire WIG-Banki gained 0.54%.
In the mining segment, the mood was mixed. While carbon
JSW with mWIG40 gained 1.88%a Bogdanka with sWIG80 increased by 3.69%copper was going against the current KGHM (-1.08%) from WIG20correcting the strong, over seven percent increases from the previous day.
There is also a red side in WIG20 Modivo (-1.38%). Allegro, LPP and Budimex (-0.89%) also saw a cosmetic discount among blue chips.
A drama from the creators of a cooking simulator
It provided the most excitement on the broad market Grupa Pracuj (-0.12%)where, despite solid EBITDA results (PLN 80.5 million) and the recommendation of PLN 3 dividend per share, the company's price continued to decline. In turn, the course Creotech (2.34%) responded positively to the finalization of the process of separating the quantum segment into the new structure. It was a black Thursday for shareholders Big Cheese Studio (-37%). After the premiere of the game “Cooking Simulator 2”, which did not meet the high market expectations, the company's price collapsed, finding itself in the balancing phase at the price of PLN 7.2.
For another day in a row, trading did not start on the shares of Kombinat Konopny, which debuted on NewConnect the day before. The theoretical opening price suggested an astronomical rate of return 1900%.
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