Listed construction companies are taking a beating on Warsaw’s stock exchange, as investors digest yesterday’s shocking news that PBG and Hydrobudowa are in bankrupty proceedings in a court in Poznan. The recents developments could deterred many companies from investing in the construction sector in the long-term, analysts claim, deepening the concerns over the condition of the building sector in Poland.
Stocks tumbled 4.8% at the opening of trading on the WSE, and it’s unremarkable that PBG i Hydrobudowa Polska were WSE’s cheapest companies, falling as much as 46.3 percent and 38.2 percent. Other issues fared badly as well, such as Also Rafako (-2.8 percent) and Energomontaż-Południe (-26.7 percent) have dragged the sector down over the last two days, that’s also owned by PBG. The market also reacted negatively to a PLN 308m penalty charged to the consortium of PBG and Hydrobudowa in connection with delays on the construction of the National Stadium.
