WIG20, the index of the largest companies, increased by 3.4% at the close of the session. In turn, the WIG broad market index ended at a historic high. Among the blue chips, only two companies were in the red: Orlen and Tauron.
The WIG index broke a record – it increased by 3.3%. to 129,200.67 points, ending the session at a new historical maximum. The previous record from February 4 was approximately 128,173 points.
See also: Markets react to the ceasefire. The expert pays attention to one word
Euphoria on the stock exchanges after the truce in the Middle East
“Today there is euphoria on the markets, investors are very optimistic about the news about a two-week break in hostilities. Oil prices are clearly falling and, as a result, what has been happening over the last month is negated,” Sobiesław Kozłowski, director of the investment advisory department at Ipopema Private Investments, told PAP Biznes.
As he emphasized, there are increases in share prices, but also decreases in bond yields. Bank shares rose significantly. The European Eurostoxx Banks index, which groups the largest banks in the euro zone, increased, which translated into an increase in the ratings of Polish banks.
The stock market reacts to the ceasefire
Among the blue chips, the largest companies on the WSE included in WIG20, the shares of KGHM, mBank and Alior Bank increased the most.
- KGHM: + 10 percent
- mBank: + 9.4 percent
- Alior Bank: + 7.3 percent
“What was strong in recent weeks is behaving weaker and vice versa. The question is whether this two-week truce will be maintained,” said Sobiesław Kozłowski.
He assessed that the drop in oil prices alleviates inflationary and cost tensions, hence the increase in share prices and the decline in bond yields.
See also: Return on stock exchanges after the ceasefire. One industry is seriously in decline
Rebound on the stock exchanges. Down the line, energy companies
They fall, among others: quotations of some raw material companies. Only two companies recorded declines in WIG20:
- Orlen: – 2.84 percent
- Tauron: – 1.90 percent
The war in the Middle East has been going on since February 28, after the US and Israel attacked Iran. Donald Trump announced on Tuesday (on the night from Tuesday to Wednesday, Polish time) that he had agreed to a two-week ceasefire provided that Iran opens the Strait of Hormuz.
The ceasefire brought relief to the markets. Oil prices dropped by several percent. Euphoria on the stock exchanges was also visible in the USA, where the main indices increased significantly. They gained, among others: technology companies, and the fuel industry was losing money.
