One unexpected result from the Polish parliamentary elections has been a sharp sell-off on the Warsaw Stock Exchange this week. Investors were spooked by the emphatic victory of the Law and Justice (PiS) party, which promised to introduce new taxes on the biggest international lenders operating in the country. As a result, WIG Banki, an index of blue chip lenders, has been dropping since Monday, as investors avoid the financial sector over fears about next year’s profits. Turmoil, however, is pulling WSE energy companies up.
In the meantime, the Polish złoty is slowly rebounding from a two-year low it hit Monday. The EU/PLN exchange rate now stands at 4.27. At the same time, the Polish złoty strengthen against the Swiss franc to CHF/PLN 3.93: welcome news to Polish borrowers who are paying Swiss franc-denominated loans.
