WIG20 on its way to a historic peak. Will it make it in time for the 35th anniversary of the WSE?
On Tuesday, WIG20 reached levels not seen in 18 years and is confidently heading towards the historic peak of 2007. However, it is difficult to expect that the index of Polish blue chips will overcome the distance in the coming days, when the WSE will celebrate the 35th anniversary of the first quotations. Records are already being broken by WIG, which started it all. The good mood on the Polish stock exchange is in line with the sentiment on Western markets, which positively perceive signals of relaxation between the US and Iran.
During Tuesday's closing, WIG20 increased by 1.13%, and during the day it gained even 1.6%, reaching the level of 3,654.27 points, which is a new peak of the ongoing bull market. This is the highest in over 18 years. The highest valuation of WIG20 from 2007 is just over 8.3%.. It is difficult to suspect that this will be possible in the next two days, which would be symbolic in the context of the celebration of the 35th anniversary of the WSE, which is associated with the first WIG quotations. This index started from the level of 1,000 points on April 16, 1991. Currently, the oldest Polish index is at the level of 132,821 points – the highest in history in closing prices, after an increase of 1.15%. on Tuesday.
The mWIG40 was also the highest in history during the session (9,145.29 points), ending the day with an increase of 1.26%. up to 9,144.90 points No records yet for sWIG80, which gained 0.72%. The market turnover amounted to over PLN 2.64 billion, of which PLN 2.2 billion concerned WIG20 companies.
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Warsaw was in line with the positive mood prevailing on Western markets. At the end of the session in Poland, the German DAX was gaining 1.3 percent, the French CAC40 was growing by 1 percent, and the British FTSE100 recorded a symbolic plus of 0.1 percent. Green also dominated overseas – the S&P500 grew by 0.7%, and the technological Nasdaq gained as much as 1.3%.
We are heading towards the top of WIG20
The main driving force behind the growth was the improvement in geopolitical sentiment and technical market strength. Investors were very optimistic about the preparations for the next round of negotiations. Timing is key here – talks are to be initiated before the current two-week ceasefire expires. According to media reports, the US-Iran meeting is to be held in Pakistan again, and diplomats would sit down at the table this coming weekend.
The parties are also expected to come closer in their positions, which is an opportunity to develop a consensus. Moreover, Iran is considering a short-term suspension of the movement of its ships through the Strait of Hormuz in order not to thwart a new round of peace talks with the US and avoid testing the US blockade, Bloomberg reported on Tuesday.
The inflow of positive information to the financial markets allows the continuation of the long-term upward trend on the Polish stock exchange. Przemysław Smoliński, an analyst at PKO BP, points to the breaking of key resistances – in the context of WIG20. “In the middle of last week, WIG20 returned to the upward trend, breaking the peak at the end of February. Today we are also rising and I think that at the moment we can still assume a further upward movement. From a technical point of view, we are in an upward trend. It is described by the medium-term channel and we are heading towards its upper limit, which is around 3,900 points,” he said in a comment for PAP Biznes.
Żabka and CD Projekt are the leaders, Orlen is in decline
Among the largest companies, the leader was Żabka (6.06%), whose shares rose in price after an optimistic recommendation from Kepler Cheuvreux with a target price of PLN 27. The price ended at PLN 24.50 per share. It is also worth paying attention to Dino Polska (-1.4%) after the negative “reduce” recommendation from Kepler Cheuvreux, which increased the valuation of Żabka.
CD Projekt (6.16%) and Allegro (3.63%) also had a strong day. Shareholders of KGHM (3.73%) had reasons to be satisfied, as it continues to rebound after a wave of declines caused by tensions in the Middle East. Apart from copper rising by over 1.5%, the price was supported by silver rising by over 4.3%.
The mood in the banking sector was mixed, although the leaders shone. PKO BP gained 1.93%, breaking the barrier of PLN 100 per share and reaching a historical record (PLN 101.20). ING Bank Śląski also reached new highs, although at the end of the session its price fell by 0.04%. Pekao (1.25%) and Santander (1.11%) are also the highest in history.
The biggest contributors to the blue chip index were energy and raw materials companies. Orlen fell by 2.74% in response to falling oil prices and chances for peace in the Middle East. Even reports about the partners' return to the Polimery Police project did not help. During the session, information appeared that Hyundai Engineering had reached an agreement with Orlen and would support its completion.
The strictly energy sector with WIG20 was in decline. Tauron (-2.66%) lost despite Noble Securities increasing its recommendation, and PGE (-0.94%) after the management board's recommendation not to pay dividend. Noble Securities analysts, in a report dated April 9, increased their recommendation for Tauron to “reduce” from “sell”, increasing the target price of the shares to PLN 9.37 from PLN 7.17. Enea gained slightly (0.71%) from mWIG40. The company's management board proposed allocating part of the profit in the amount of PLN 296.6 million to the payment of dividend, i.e. PLN 0.56 per share.
A blow to coal companies, XTB resists
On the broad market, the developer Murapol (4.51%) attracted attention, which, after solid results for the fourth quarter, announced ambitious plans for the sale of apartments for 2026. XTB (2.3%) showed surprising resilience – despite the imposition of a record fine of PLN 20 million by the Polish Financial Supervision Authority, the share price turned positive after the morning nervousness and improved Monday's historical highs, reaching the level of PLN 110.48 with a valuation of almost PLN 13 billion. PLN Red, however, dominated the mining sector on the broader market. Bogdanka lost as much as 6.42%, and JSW fell by 4.16%, continuing the disastrous streak from recent days.
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