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Powerful recovery for WIG20. The whole week is plus

Mocne odbicie WIG20. Cały tydzień na plus
Powerful recovery for WIG20.  The whole week is plus
Photo: Krzysztof Kuczyk/ / forum

Friday’s session in WSE brought a strong rebound in the decline of the index of the largest companies. The stock market bulls ended the week in positive territory. The dollar’s relief favored commodity firms’ prices, and the continued recovery in banks accelerated only as sentiment improved.

From market reaction to Thursday Data released by central bank governors It can be assumed that the valuations already take into account most interest rate increase scenarios. Indices in Europe, the United States and Asia ended the session on Thursday with slight gains and rose during the Friday session. For example, the currency market reacted even stronger, as the euro regained its advantage over the dollar. The Polish zloty also rose, supporting buyers in WSE.

In addition, inflation readings in China turned out to be lower than expected (CPI 2.5% vs. 2.8% expected, previously 2.7%), supporting Beijing’s monetary policy. Thus, the data offers hope that price pressure will slow.

Demand for WSE remained strong on Friday, although the zloty fell against the dollar in the afternoon. The big gains, after the start of trading on Wall Street, only confirmed the bullish stock market speculators’ conviction of their dominance at the end of the week. The settlement of the September series of futures contracts is approaching, which in turn requires caution in interpreting the individual movements on the indices.

WIG20 rose 4.17 percent, ending the session at daily highs. Demand raised the index above the level of 1500 points, which is crucial from the point of view of the possibility of continued increases. Broad WIG increased by 3.27%, due to smaller increases in mWIG40 (1.98%) and sWIG80 (0.72%). The turnover amounted to 1.02 billion PLN, of which 869 million relate to WIG20.

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Thanks to a strong weekend, WIG20 was 1.92 percent higher on the balance sheet, while WIG was up 2.09 percent. mWIG40 performed better with an increase of 3.49%. On the other hand, sWIG80 was weaker, with an increase of only 0.28 percent.

The driving force behind the increases were mining (7.55%), banking (4.66%) and fuels (3.39%), the sectors of greatest importance to the blue-chip stocks and broad market. Energy (3.48%), the gaming sector (4.47%) and the second largest automotive sector (4.69%) were also strong. However, almost all sector indicators were positive on Friday. Only the drugs were just below the mark (-0.03%). A cheaper dollar is a relief for commodities, which was evident in the prices of crude oil and copper.

In WIG20, KGHM bids increased significantly (8.32%), with the highest market turnover above PLN 106 million. Copper price on the London Stock Exchange It was sometimes recorded at the level of 8 thousand. Gap. per ton – from the end of August at the latest.

The WIG20 mining duo completed the JSW price rally (4.52%), breaking a streak of eight consecutive downtrends.

However, shares of Consolidated Contractors Company (CCC) were the biggest gainer (9.09%), pulling them off the bear market lows of recent days.

PKN Orlen (3.43%) and PGNiG (3.97%) fuel prices increased.
Oil is back above the level At $90 per barrel, EU energy ministers are due to decide on Friday how to lower gas prices from Russia.

The group of leading companies, which contributed strongly to the growth of the entire index, was supplemented by the largest banks. PKO BP share price is up 5.02%, Pekao is up 6.42% and Santander is up by 3.33%. With that, the price of mBank rose in another session in a row (7.90%). This is the second strong session for banks, after previous sessions have deepened the price bottoms of many of them.

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Positive sentiment and increasingly transparent predictions about interest rates and an end to the rallies encouraged a rebound in recently lost stocks. The sector indicator is also in an interesting place on the chart, having tested the support area at the 5,000 points level. It climbed above it, correcting the recent declines and new lower lows. The improving sentiment towards the equity markets contributed to the momentum that generated a strong recovery.

“On the one hand, we think the valuation of the sector is at an attractive level, but on the other hand, we don’t see any factors that could certainly move prices in the month. We expect sentiment towards banks across Europe to continue to be shaped by fears about recession. The end of September, when Participation in credit holidays is crystallizing in Poland ”- they stated their position on the sector in September, analysts from BM mBank.

In the entire WIG20 basket, all shares rose, while Dino shares rose by a relatively smaller percentage (1.8%). CD Projekt stock has done well (6.93%), and its shares are clearly getting investors’ attention following the company’s results. In the short-selling record, the Verition Multi-Startegy Fund reappeared, which began playing on drops in the price of the “Cyberpunk 2077” product.

In mWIG40, 7 companies in the sector were in the red. Biggest DataWalk Price Loss (-5.54 percent) After information on the estimated loss in the first half of the year, which exceeded 113 million PLN. However, Millennium (5.24%) and InterCars (6.22%) rates were good,
Which recorded good results for half a year. However, the head of the increases was the Ten Square Games rate (7.23%), which gained this week after the results were published, and especially after the results of the conference, which may have pleased investors.

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“In the case of WIG20, the fight is still going on for the 1500 point level. If it is exceeded, at least in the short term, it will postpone the possibility of continued declines, and in a positive scenario one can expect an attack on the bear market gap from the previous Monday near 1600 Point “. – Analysts from BNP Paribas Polska Bank Polska SA wrote in the morning comment.

“(…) It seems quite possible that the dollar’s ​​bullish trend has exhausted itself. Of course, the distance between the EUR/USD pair and the bottoms is still small, but the announcement of 3-4 moves by Sea Lagarde, in our opinion, is quite enough to stop Further depreciation of the euro in an environment where the FOMC rhetoric may only become docile in light of upcoming data.” – Books by Kamil Cisowski from DI Xelion.

Good sentiment also prevailed across Europe, with indices of the most important core markets posting increases of around 1.5 per cent. and more. Against their background, WIG20 was the strongest during Friday’s trading.


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