Warsaw’s trading week was anything but sleepy, as investors focused on two market-moving names: PKO BP’s record-breaking share price and a planned full takeover bid for Żabka Group announced by Canada’s Alimentation Couche-Tard.
Friday’s session was set in motion by the morning exchange announcement from Alimentation Couche-Tard, which intends to call a tender offer in August for 100 percent of Żabka Group’s share capital. The bid price of PLN 32.00 per share, combined with Thursday’s solid quarterly report from the company, prompted a wave of buying. Żabka’s stock closed at PLN 31.80, up 8.6 percent on the day, with turnover exceeding PLN 937 million. The stock had ended Thursday at PLN 29.26 and Monday at PLN 27.40.
PKO BP shines as banks deliver
PKO BP had its own moment earlier in the week. At the close of Thursday’s session, shares in Poland’s biggest lender reached an all-time high of PLN 113.44. On Friday, the stock opened at PLN 113.90, dropped to around PLN 112.60 by 15:15 and finished at PLN 111.92, still above Monday’s PLN 108.00.
The gains in bank stocks came after Polish banks published quarterly and half-year figures. Although a higher corporate income tax this year hurt results at some lenders, the sector as a whole held up surprisingly well. One factor was the Monetary Policy Council’s single rate cut in March, which kept interest income on deposits relatively high. Another was the improving economic picture, which supported demand for investment, mortgage, and consumer loans. Banks are winding down their exposure to Swiss franc mortgages, so they no longer need to build new provisions for legal risk and can cover existing obligations from current profits.
Investors still have time to buy PKO BP shares with the right to a PLN 6.14 dividend, as the deadline falls on August 5.
Market scoreboard and next catalysts
Friday’s WIG20 session ended in a draw: ten blue-chip companies rose and ten fell. The large-cap index stood at 3,920.26 points, up from 3,867.54 points on Monday. The broad WIG index rose to 147,400.90 points from 144,465.30 points, and among all listed companies 170 advanced, 144 declined and 58 were flat. Friday’s total turnover exceeded PLN 3.6 billion.
Among the companies due to publish half-year numbers in early August are Alior Bank and PKO BP.
Źródło: WNP.PL, Fot. MOZCO Mateusz Szymański / Shutterstock
