Poland’s banking sector bounced back on the Warsaw stock market, rising nearly 1,000 points this week from a 4-year low sparked by recent turbulence. Analysts say it’s taken a month for investors in the WIG-Banki blue chips to discount all the adverse information, including the new bank tax. The index had gained 18.9 percent by yesterday’s closing. Analysts warn, however, that as the banking sector has been recently hit by a 31 percent y-o-y fall in value, it will need more time to recover.
In what’s already been called a bank ‘massacre’, the sector was hit by a series of new risk factors, all of which emerged in January. Market watchers point out, however, that the sector has experienced overly ambitious growth over the last eight months, growing 38 percent during the period.
