Today, in the first part of the Warsaw Stock Exchange day, the Warsaw Stock Exchange Index broke the historical record obtained on June 28 this year. Investors are increasingly hoping that the main WSE indices will leave broad consolidation. From the beginning of June, they are waiting for a stronger upward impulse and entry into another, dynamic boom wave.
In early June, the prices of Polish stocks lost their upward momentum. A very delicate, but tiring correction took place, with which we entered the holiday season. Its range on the WIG was 65203-68148 points, and on the WIG20 2189-2293. If at the end of the day it was possible to maintain the gains and definitely close the quotations in Warsaw above the previous WIG record, then leaving such an extensive formation could bring about rapid increases in indices by a minimum of 4%. This is what the basics of chart analysis suggest. However, this would be a very clear signal confirming the long-term boom on the WIG, the ranges of which can be impressive.
Optimism can be seen among CMC Markets clients operating through CFDs on Polish shares and Poland20. 74% of the most effective clients (with profits for the last 3 months) operating on this instrument have open positions for growth. There is also an advantage of optimists among all clients – 66% of clients have positions for growth. Further, on individual Polish shares via CFDs, in the case of many companies there are no open positions at all for decline.
Another significant increase, but in line with expectations, was recorded by the EU producer prices. They increased by 1.4% in a month, which means a 10.2% increase for the last 12 months. Inflation is thus holding up well in Europe and around the world, both in terms of producers and consumers. In this regard, an interesting announcement came from the Danish shipping giant. Maersk has raised its forecasts for its results for the full year, following a continued recovery in demand and rising freight rates. He also pointed to bottlenecks in supply chains and shortages of equipment and infrastructure. Retailers are therefore continuing to replenish stocks that were exhausted at the beginning of last year. As consumer spending rebounded, freight rates this quarter rose 59% compared to last year, while shipment volumes increased by 15%. It is believed that this exceptional market situation is expected to last at least until the end of 2021, mainly thanks to Chinese exports to the US. Maersk’s forecasts can be taken as confirmation that the inflationary pressure will not weaken quickly and at the same time that good economic conditions and a rebound in global consumption may persist longer than analysts expected.
Last week, some of them wondered if the crisis of Chinese tech companies, which spilled over into Chinese companies listed in the US and caused a reduction in allocations in emerging markets, would hit WSE shares. However, as has been the case for many months, shares on the Warsaw Stock Exchange are relatively gaining in relation to other developing markets. Investors on our stock exchange do not deal with the local troubles of Chinese giants. There was more uncertainty on the zloty, but today it is not an obstacle to the good atmosphere on the WSE. The zloty is gaining slightly, beating important support levels. It broke 3.84 on USD / PLN and 4.56 on EUR / PLN.
Today, higher turnover can be observed on PKN and Allegro. At the time of publishing this comment, they are not important enough to confirm a breakout on the WIG. The optimists are left to wait. The direction is confirmed by the number of companies with the highest quotations in the last 52 weeks. Today, there are already 13 new records and one company with a minimum.
So you can see that despite a series of comments about the cucumber season on the WSE, it is worth keeping your finger on the pulse. As confirmation of this thesis, it is worth noting that on Monday, the volume of 14 companies was at least five times higher than the average from 10 sessions: APSENERGY, BAHOLDING, BOWIM, EMCINSMED, ENAP, GAMEOPS, KRVITAMIN, LIBET, MAKARONPL, MARVIPOL, PROCHEM, SUWARY, TRANSPOL and ZAMET.
Source: Łukasz Wardyn, director – Eastern Europe, CMC Markets
ISBnews / CMC Markets
