Investing on the WSE is currently a high-risk game. Friday saw a historic rebound after sharp declines from the previous day. The banking sector turned out to be the driving force.
The direction of further trade will be shown by the next days and new information from the battlefield and diplomatic efforts, which may lead to the meeting of the presidents of Ukraine and Russia. The opening on Friday in the main indices was upward. WIG20 was higher by 1.81%, WIG increased by 2.18%, mWIG40 by 0.81% and sWIG80 by 1.37%. The dynamics of changes was high and the indices were rising rapidly. WIG and sWIG opened a minute after WIG20 and mWIG.
The next historical session saw a sharp rebound on the main WSE indices, from which the WIG20 rose to 1,970.78 points, i.e. by 8.44%. – the highest number since November 24, 2008, the WIG was higher by 7.68 percent, reaching 60 414.19 points. mWIG40 went up by 7.42 percent. up to 4 569.02 points and sWIG80 by 4.51 percent. up to 18,030.67 points The turnover amounted to over PLN 2.33 billion, of which over PLN 1.94 billion was related to WIG20.
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The focus was on the large companies index, which experienced the third largest sell-off in history on Thursday (-10.87%). listing of Ukrainian companies listed on the WSE and companies with a high exposure to markets torn by war. The whole was represented by the broad market index, and this one experienced the second biggest sell-off in history during the Thursday crash (WIG, -10.76%).
The indexes of the food industry (16.74%) and banks (13.18%) were the strongest in terms of sectors on the WSE. Mining was close to double-digit increases (9.30%), chemicals and fuels increased by 8.1%. Smaller increases were recorded in clothing (1.78%), construction (1.93%) and automotive (3.27%). All 14 sector indices recorded increases.
After the Russian indices, WIG and WIG20 were the fastest-growing benchmarks in Europe. RTS gained 26.12 percent. MOEX was higher by 20.04 percent.
In the WIG20 index, the banking sector grew the most with Pekao (17.14%), PKO BP (13.27%) and Santander (11.43%). In the week that Russia attacked Ukraine, the results were shown by three major banks, including the largest PKO BP. Millenium generated increases in the bank’s key interest and commission income. The same was true of the two from WIG20, i.e. Santander and PKO BP. PKO BP’s net profit of nearly 5 billion will go to dividends in half. Santander plans to allocate 30 percent. for a payment to shareholders. And the profits in 2022 may be even greater, because they will fully reflect the scale of the already made interest rate increases. We wrote more about the banking rally in the article “Banks manage a reflection “
Banks were also turnover leaders. the most traded on PKO BP (PLN 329.2 million), Pekao (PLN 269.6 million), KGHM was close to the threshold of 200 million, and 5 more companies exceeded 100 million: Allegro (4.20%) , PKN Orlen (10.96%), PZU (7.84%), LPP (-0.62%) and Dino (5.95%)
For the sake of order, let us add that Mercator (15.25%) and CCC (14.90%) were also on the podium of increases. But in fact, strong gains concerned all companies in the basket, especially those “heavyweights”, with large capitalization as KGHM (9.34%) or PKN Orlen. This significantly contributed to the writing of the historic session on the WIG20 – the best one since the end of the first decade of the 21st century. In search of further increases at this level, one would have to go back to the 20th century (autumn 1998). For WIG, it was the best session since September 2, 1998.
Only the above-mentioned LPP recorded declines today, although their scale was several times greater during the session. It is worth adding that during the session the company’s share price was over 10 porc. increases, which shows how volatile we are dealing with in the markets, especially in the last two days.
“The war in Ukraine continues, and the next goal is Kiev. At the same time Western countries have made it clear that they will not decide to completely isolate Russia and suspend the purchase of raw materials, as this would have catastrophic consequences for their economies. To ease the situation on the oil market, the US informed that they will release some of the strategic reserves in order to lower fuel prices, “wrote Rafał Sadoch from the BM mBank in a commentary.
The declines on the WIG20 began to slow down with the support in the region of 1860 points, if the initiated strong rebound is continued, the next levels to be overcome are between 2060 -2100 points, emphasizes DM XTB’s technical commentary.
In the second row, banks and Polenergia (13.17%) gained the most, apart from Kernel. Banks, including Alior (17.9%), mBank (12.81%), Millenium (11.23%) and Handlowy (10.91%), contributed the most to the growth due to their weight. mWIG40. Only Budimex (-1.3%) and Asseco (-1.84%) recorded declines.
In sWIG80, most of the stocks rebounded, and the most increased, apart from the Ukrainian IMPCompany, Bumech (21.84%) and Getin Bank (16.96%). The decreases were led by Lubawa (-13.48%).
Almost all stocks rose in the WIG-Ukraine index, except CoalEnergy (-17%), which stopped mining coal in its Ukrainian mines, and the slightly declining Ovostar (0.87%). In the remaining cases, there was a strong rebound of producers from the food sector operating in Ukraine, which, however, did not manage to wipe out yesterday’s declines. IMCompany rates increased the most by 27.97%, KSG Agro by 23.55%, and the largest in terms of capitalization, Kernel was higher by 24% with a turnover of over PLN 30.5 million, and the volume of shares in these shares was twice as large as on Thursday. The national WIG-Ukraine index increased by 19.72 percent.
“The market may temporarily positively evaluate the fact that, after a series of threats against countries that would like to support Ukraine militarily, Russia has in no way reacted to the EU’s announcements and actions that are softer than American and British (for example, Russian institutions are not cut off from interbank operations in euro ), not only not reducing, but even increasing yesterday’s gas transmission by 38 percent (Bloomberg data), and potentially even more today “- wrote the director of DI Xelion, Kamil Cisowski in the morning’s comment.
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Michał Kubicki
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