Very weak data from the American economy caused a sale on global stock markets just before the day without a session, which in Europe is associated with the 1-May Labor Day. Indexes on the WSE dived, and the month ended in their weakest result this year in terms of rates of return.
The event of the day in the markets was the publication of data from the American economy for the first quarter of 2025. Negative GDP dynamics, an increase in prices according to Miary PCE, both in the general and base edition, from the higher GDP deflator showed that concerns about recession in the US are the most justified. This broke good moods on the markets that mostly kept European indexes above the line. Fatal data led to a quick discount, which was still increased after the start -up session at Wall Street. There, at the end of trade in Warsaw, S & P500 lost 1.3 percent, and Nasdaq over 1.7 percent.
It should be noted, however, that the indexes on the WSE before the storm after data from the US stood out with form and lost. It is true that just after the opening of the mWIG40 and sWIG80 session, historical records have improved, which now amount to 7,692.66 points and 27,857.13 points, respectively, but later they were sliding together with WIG20, which was also in the plus for a moment in the morning.
In the second half of the day, at the Risk-Off mode, the sale on world stock exchanges accelerated the sale before the day off on European markets related to the Labor Day, which I celebrate without working. In the shade there was economic data from Europe regarding preliminary GDP readings, lower inflation from Poland or data from China.
Ultimately, WIG20 fell by 2.6 percent, although at times it lost over 3 percent, WIG was lower by 2.08 percent. In turn, MWIG40 gave 0.74 percent, and SWIG80 0.96 percent Turning in the wide market amounted to PLN 2.66 billion, of which PLN 2.27 billion concerned companies from WIG20.
It was the last session of April, which was full of market turmoil, related to the US unleashing the full -scale customs war with almost the whole world, brought a strong reflection in the second half, related to the alley of the position of Donald Trump. However, you can see the weakening of the impetus wave of the bull market, which in April amounted to WIG over 100,000. point (lost on Wednesday). While in January WIG grew within 10 %, in February by over 5 percent, and in March over 4 percent. In April, the increase was less than 3 percent. This can be seen even more clearly in the case of WIG20, which April ended with an increase of 1.81 percent.
“We are falling harder than the base markets. It seems that some investors are closing its positions before the picnic, also according to the principle of 'Sell in May and Go Away'. Banks are conducted in decline. In WIG20 CCC is also a burden,” Mateusz Chrzanowski, Noble Securities analyst, told PAP.
“The correction on mWIG40 and swIw80 is rather symbolic, taking into account what movements occurred at these indexes recently, when the indexes reached subsequent historical peaks” – he added.
In WIG20, the CCC exchange rate (-11.04 percent) stood out from the morning, by the reaction of investors to the result report for 2024. According to Chrzanowski, one of the reasons for the strong price drop was the issue of challenging by the auditor the settlement of the settlement of some high-scale contracts.
Banks also lost clearly more. The mBank exchange rate dropped by 4.9 percent, Santander by 4.04 percent, PKO by 4.56 percent, Alior by 3.63 percent, and Pekao by 2.21 percent. He gave the entire WIG-Banki on Wednesday 3.59 percent And next to WIG-WIEG (-4.85 percent) and WIG-Górnictwo (-3.61 percent) was the weakest sector benchmark on the WSE day. Next Wednesday, the MPC is to return to cutting interest rates. The results from the group of banking companies were shown by mBank, Santander and Pekao. In each case, the profits were higher than the expectations of analysts.
In total, 18 companies from WIG20 were on Wednesday under the line, and in terms of turnover outside the largest PKO bank (PLN 377.5 million), Pekao (PLN 368 million) and CCC (PLN 274 million), trade in Orlen (-1 percent) can also be distinguished, where the turnover was PLN 192 million. Over 100 million exchanges were still counted on Dino (-1.42 percent), PZU (-1.74 percent), Santander and KGHM (-3.98 percent). The strong discount of the latter is associated with around-percent. distributing copper prices as a result of fears about the condition of the US economy and demand and raw material. Increases recorded on the tape of Orange share prices (0.21 percent) and Kęty (0.35 percent).
From the wide market, Rafamet (20.79 percent) scored the next day of growth, which, together with Rafako, is to be the beneficiary of government help. The Rafako course (-5.29 percent) on Wednesday, however, corrected the increase from mid-April by over 390 percent.
Investing in Cloud Technologies (20.67 percent) could also be satisfied, after DM BOŚ analysts, in the report of April 29, raised the recommendation to “Buy” with “Hold”, although they slightly reduced the valuation of shares in a 12-month horizon.
The new historic peak has reached the XTB course (3.96 percent) in response to the presented results of results for the first quarter, which turned out to be better than consensus. Grupa Azoty (-0.48 percent) showed the final results for 2024.
Michał Kubicki
