“Miners” in the main role again. Stock market descent to the bottom and return to the surface
Monday's session on the Warsaw Stock Exchange was marked by a low opening and making up for losses. The main actor in the event was the price of KGHM, which reacted to the crash in silver prices. The broad market tried to resist the decline, finding support in the growth of the banking sector.
At the end of the session, WIG20 gained 0.12 percent at the end of the day. The broad WIG index increased by 0.19%. Smaller entities from MWIG40 showed relative strength, as the entire index gained 0.75%. In turn, sWIG80 lost 0.58%. The session ended close to neutral levels, but the morning did not promise such a flat result. Weaker sentiment on Wall Street combined with a huge metals sale cast a shadow on stock markets from Asia to Europe.
Before noon, however, greenery began to appear on the Old Continent. At the end of trading in Warsaw, DAX was already gaining 1.2%. CAC40 grew by 0.8%, and the British FTSE100 even climbed to its historic peak, gaining 1%. Wall Street was also in green after the cash market opened. In this system, the result of the trading floor in Warsaw looked poor, but it was crushed by the withdrawal of KGHM. The daily turnover on the broad market was summed up at PLN 3.77 billion, of which PLN 3.3 billion concerned WIG20 companies, but again PLN 1 billion was only trading in KGHM shares.
KGHM on a rollercoaster
What happened to KGHM shares on Monday can be described as a market earthquake. Already at the opening of the session, the price of the copper giant increased by over 15%, which was a direct response to the dramatic events on global raw material markets. Let us recall that on Friday, silver prices dropped by an incredible almost 30%, and gold lost about 11%. its value.
Investors who saw KGHM's price at around PLN 400 last Thursday had to face a valuation of PLN 280.60 on Monday morning. However, the mood improved somewhat during the session and in the middle of the session the depreciation was “only” 7%. The huge turnover indicated that demand had become active at these levels, trying to find a place to “rest” after the wave of panic selling. At the end of the day, the price fell by 5.99%. up to PLN 312.20.
Uneven retailers, Allegro strong
The retail segment performed poorly on Monday. Pepco lost 0.59% despite announcing ambitious digital transformation plans. The company has launched a new website in Poland with a ten times larger product catalog, which is to be the foundation of a new e-commerce strategy, which will be implemented on European markets by May.
CCC was also in decline, losing 0.51%. Investors are still digesting the group's weaker-than-expected earnings estimates. On the other hand, it is worth noting the increases in the prices of the Żabka Group (0.75%) and Dino Polska (0.13%). LPP shares were more positive (1.02%), and Allegro shares were in a very positive mood. The leader of Polish e-commerce gained 1.69%.
The financial sector is a counterweight
The financial sector was relatively stable and protected the WIG20 index from the decline caused by what was happening at KGHM. The WIG Banki index gained 1.56%, which indicated high demand for shares of borrowers, just before Wednesday's decision of the Monetary Policy Council. Santander's share price gained 2.68%. and was the strongest that day in WIG20. The next place was taken by the shares of Pekao (2.12%) and Alior (1.72%). mBank (1.64%) was fifth in this respect, just behind Allegro.
JSW is the star of the background
In the lower market segments, JSW attracted attention, gaining 9.98%. There was a feeling of anticipation on the trading floor for a breakthrough in the talks regarding an agreement between the company and its staff in order to regain the financial liquidity of the mining company. The involvement of the Ministry of State Assets, the management board and trade unions gives hope for a systemic solution to the problems that speculatively increased the valuation of JSW. Strong increases in coal prices on global markets are certainly important, but their durability is uncertain, unlike the high fixed costs at JSW.
Synektik also stood out positively in the mWIG40 index (2.64%). The company announced the extension of its strategic agreement with Intuitive Surgical to include the Ukrainian market and the extension of cooperation in all fields until the end of 2031. This confirms the company's strong position as a distributor of da Vinci medical robotics systems in the region.
In turn, XTB gained 2.17%, although at the peak of the session the increases exceeded 4%. thanks to which a new historical peak was established at PLN 89.18 per share. The broker is benefiting from the recent market volatility, which, combined with a huge customer base, should translate into financial results.
