Banks weigh on the results of major indices. Pepco the most expensive since 2023, Bumech has decided what to do with its operations in the defense sector
Thursday's session on the Warsaw Stock Exchange was marked by a clear advantage of supply, which made the WSE stand out from the background of moderate declines and even increases of the main indices in Europe. Investors had to face an unfavorable ruling by the EU tribunal for the financial sector. The declines of banks weighed heavily on the main indices, especially WIG20, where Pepco turned out to be a market outsider and recorded an impressive rally after updating its forecasts.
At the close of Thursday's quotations, WIG20 fell by 1.02 percent, stopping at approximately 3,578.84 points. The broad WIG index decreased by 0.99%. up to 131,420.18 points Medium-sized companies also performed poorly – mWIG40 dropped by 1.1%, while sWIG80 showed relative resistance, losing only 0.22%, which can be explained by the insignificant share of banks (only BOŚ) in the company's portfolio. The total turnover on shares of WIG20 companies amounted to PLN 1.85 billion, while on the entire market it was PLN 2.28 billion.
The mood in Warsaw was clearly worse than on the main trading floors of the Old Continent. At the end of the session on the Vistula River, the German DAX was losing only 0.1%, and the British FTSE 100 was falling by 0.4%. In turn, the French CAC 40 was 0.7 percent. growth, stock exchanges in Italy, Switzerland and Sweden also grew. Overseas, the S&P500 was at a neutral level, and the technological Nasdaq fell by 0.3%.
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Geopolitics and the CJEU dictate the conditions
The key factor hampering demand was a combination of unfavorable information from around the world and from the courtroom. As experts note, emerging markets, including Poland, are under pressure due to the strengthening dollar.
– Two topics dominate today. One is the situation on the broad market, where the dollar is strengthening a bit, which puts emerging markets under slight pressure. Our stock exchange is doing a little worse because our banking sector is in decline after the CJEU judgment. In general, the CJEU ruling is more pro-consumer than pro-bank – said Konrad Ryczko, analyst and broker at DM BOŚ.
He drew attention to the return of the risk-off mode caused by the events in the Persian Gulf and the lack of an agreement with Iran. The escalation of tensions resulted in oil prices remaining above $100 per barrel. Donald Trump announced on Thursday that he had ordered the US Navy to immediately attack boats laying mines in the Strait of Hormuz. According to the Washington Post, the Pentagon reported that it could take up to six months to fully clear the strait of Iranian mines. This means that the economic effects of the current conflict may last until the end of the year or even longer, the daily emphasized.
The banking sector is in retreat, Pepco is the star of the session
The financial sector was the biggest burden for the WIG20 index on Thursday. The WIG Banki sub-index lost 1.9%, which was a direct reaction to the CJEU judgment, which ruled that a bank cannot charge interest on amounts intended to cover the costs of a consumer loan. Among the large banks, Pekao lost the most (-2.67%), but mBank (-2%), PKO BP (-1.73%), and Aliora (-1.63%) also fell significantly.
As Wojciech Bochenek from a law firm belonging to the Votum group said in a comment for PAP Biznes, the CJEU judgment is a breakthrough. In his opinion, unfair contracts will be widely changed in favor of consumers through the judgments of countries' courts. In turn, Bank Pekao believes that the CJEU judgment does not provide grounds for mass or automatic questioning of loan agreements and the application of free loan sanctions (SKD).
A total of 15 WIG20 companies ended the day with declines in share prices. The leader of the declines in the blue-chip portfolio this time were CD Projekt shares (-3.21%), which, however, have had several weeks of increases. Kruk's shares also fell more sharply (-2.87%).
Completely different sentiment prevailed on Pepco shares (8.86%) after it raised its net profit and EBITDA forecasts for 2026. Investors enthusiastically welcomed the announcement of an increase in net profit by at least 50%. rdr. During the session, the price reached PLN 31.94 per share and was the highest since September 2023. At the end of the session, the price for Pepco shares was PLN 31.81.
Shares of Allegro (0.47%), Orlen (0.44%), PGE (0.66%) and Kęty (0.71%) also saw increases in WIG20. The latter positively surprised with the results for the first quarter (net profit of PLN 145 million compared to estimates of PLN 132 million), maintaining ambitious forecasts for the whole year.
He will manage Bumech's defense activities at Capital Partners
In the mid-cap index, the following companies attracted attention: Grupa Azoty (7.59%) and Creotech (2.8%), which rebounded after previous declines. Orange Polska (-1.38%), which, despite solid EBITDAaL results for the first quarter and targeting the upper range of annual forecasts, was unable to resist the general decline.
On the broad market, Movie Games (11.03%) was a real rocket. Investors reacted to the announcement of the release date of “Drug Dealer Simulator 2” for next-generation consoles, which was set for mid-June.
Capital Partners' increases (26.78%) are the result of the announcement by Bumech, which controls Thursday's growth leader. Bumech is reorganizing its activities related to the defense sector and transferring it to the listed company Capital Partners, the company said in a press release. Shares of Bumech itself fell by 1.2%. Let us recall that Bumech has signed agreements with partners such as OTT Technologies (a South African manufacturer of armored vehicles) and United Manufacturing Technologies (USA), planning the licensed production and renovation of military vehicles, e.g. the HMMWV type. The company diversifies its activities beyond mining (PG Silesia), using its competences in the production of heavy machinery for the arms industry.
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