After nearly 19 years of waiting, Warsaw’s WIG20 has finally set a new all-time high. The blue-chip index reached 3,963.12 points at 9:46 on Monday, surpassing the previous record of 3,940.53 from 29 October 2007.
The opening session featured a burst of buying, with investors paying little attention to price levels. Just after 9:00, the index was already at 3,950.18, and within minutes it climbed to its historical peak. That proved to be the high point of the day, as WIG20 later slipped and closed at 3,943.04 points – still an all-time closing high.
WIG20 was created in 1994 and now tracks 20 major listed companies, but only one member of the original basket is still in the index. Before Monday, several of its largest constituents, including PKO BP, Orlen and Zabka Group, had already hit record levels of their own, making a move by the entire index look increasingly likely.
A long-awaited breakthrough
The previous market peak had held for 18 years and nine months. Friday’s close of 3,920.26 put WIG20 near the record, and Monday’s opening confirmed the rally. For years after the 2007 high, the market lacked fuel and the Warsaw bourse ceased to be a gauge of Poland’s economic condition. By 14:00, the index had retreated from daily highs to 3,930.56, still 10.19 points, or 0.26 percent, above the previous session.
At that stage, 13 components were gaining and seven were falling. KGHM led the winners with a 3.50 percent rise to 311.45 zloty, followed by PGE at 2.67 percent (10.38 zloty), Dino Polska at 2.63 percent (32.83 zloty) and Kruk at 1.67 percent (432.70 zloty). CD Projekt, Allegro, Zabka Holding and Erste Bank Polska were among the losers.
The final session tally was even more positive: 17 companies closed higher and only three lost ground. PGE gained 3.31 percent, Modivo added 2.52 percent and Kruk rose 2.16 percent, while Allegro, Zabka Holding and Erste Bank Polska ended lower. Turnover on the day amounted to 1.882 billion zloty.
Foreign investors in focus
The market’s reputation has changed considerably. Both institutional and retail foreign investors are now drawn to Poland by the high capitalisation of its leading companies, and the domestic financial sector, particularly banks, is performing well. Capital increases by listed firms are being absorbed by investors without problems, while accelerated bookbuilding has allowed shareholders to offload stakes worth hundreds of millions or billions of zloty.
Mergers and acquisitions also illustrate the trend. Austria’s Erste Bank is buying Santander Bank Polska’s assets in a deal valued at 7 billion euros. Recent transactions have involved Asseco Poland and Comarch, and last week Canada’s Alimentation Couche-Tard offered 8 billion dollars for 100 percent of Zabka Group.
Polish listed companies are increasingly regarded as a natural platform for expansion in Central and Eastern Europe. Some analysts warn that enthusiasm may cool in the coming months, especially with state debt and the public deficit growing. Others expect the rally to continue through the end of the year, helped by new OKI regulations and larger inflows into PPK pension funds. The broader WIG index closed at 148,428.28 points, and an attack on 150,000 could come as early as this week.
Źródło: WNP.PL, Fot. MOZCO / Shutterstock
