This is the fourth session in a row with the decline of the WIG20, which deepens the correction of the blue chip index to the level of 2000 points. The day again brought wide declines in the portfolio of the largest companies. Market moods were spoiled by hawkish Fed minutes published on Wednesday evening.
On Thursday, the WIG20 fell by 1.13 percent, the WIG was lower by 0.85 percent. Medium and small companies were relatively stronger, with the mWIG40 and sWIG80 indices losing 0.1 and 0.49 percent, respectively. Turnover on the broad market amounted to PLN 854 million, of which PLN 657 million was attributable to WIG20.
The description of the discussions from the July Fed meeting was perceived as hawkish, resulting in declines in the stock markets and an increase in the yields of US 10-year bonds to levels not seen since October 2022. Speculations are growing on the market that decision-makers from the US central bank will extend the cycle of interest rate hikes interest rates, or at least they will maintain their present level for a long time.
According to the FedWatch Tool, the greatest probability concerns keeping rates in the current range until the end of March, although a week ago, at that time, the market was already pricing in cuts the most. The increase before the November meeting is valued at approx. 41 percent. (about 10 percent more than a week ago). On Thursday, as usual, the unemployment claims figures appeared on the market, confirming the strong labor market and thus supporting the Fed’s hawkish attitude.
The increase in risk aversion effectively sucks capital out of emerging markets, and in addition, the observed strengthening of the dollar against the zloty does not support the demand side, which gives the market space to bears along the entire line, so the WIG20, which is most sensitive to global sentiment, falls the most and after four sessions of supply advantage has already given up over 5.1 percent
In terms of sectors, the automotive industry gave the most (-4.62%) and once again banks (-1.63%), this time also fuels (-1.56%), and mining continued to be weak (-1.33%) percent). Turnover on the last three indices exceeded PLN 384 million. Almost all 14 industry indices were in the red, because they were down 0.48 percent. construction has increased.
The overwhelming predominance of supply was again visible in the WIG20, where the prices of 18 companies fell. The following banks lost the most: Alior (-3.91%), mBank (-2.76%), Santander (-2.13%).
Despite the rebound in oil prices, the supply has pushed Orlen’s share prices down (-1.66%). Similarly, KGHM’s price has not reacted to the rebound in copper prices (-1.24%), and JSW’s share price is heading towards an annual low (-1. 42 percent). Cyfrowy Polsat (-1.95 percent) showed a full result report, where the results were below expectations. Thus, the exchange rate deepened over 10-year lows.
Only the price of Allegro (0.53 percent) recorded increases in the basket, and Dino shares (0.0 percent) remained neutral.
In the lower segments of the market, attention was focused mainly on companies that showed earnings reports. Benefit stood out in this field (11.18%), whose profits positively surprised.
InteCars was on the other side (-6.84%), which estimated the net profit in Q2 significantly below expectations. It was similar with MoBruk (-4.05%), whose net profit in the second quarter of 2023 amounted to approx. PLN 21 million and was 8.9% higher than in the previous quarter. lower than analysts expected. In turn, Creepy Jar (-1.06%) estimated the net profit in the first half of 2023 at PLN 12.8 million, compared to PLN 18.6 million a year earlier.
The Management Board of Grodno (-1.92%) proposes that the net profit for the financial year ended March 31, 2023, amounting to approximately PLN 20.1 million, be allocated to the company’s supplementary capital.
2023-08-17 15:26:00
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