The lack of fresh capital has not allowed developers to profit on the Warsaw Stock Exchange, claims the business server parkiet.pl, despite the Polish bourse’s strong performance in 2012. Although the return rate for the WSE’S WIG index increased by a healthy-sounding 30 percent over the last 12 months, investors are becoming far more selective. According to the business website pakiet pl, the WIG DEWELOPERZY index has kept its position over the past 12 months. In fact, the index was close to its 2008/2009 levels several months ago.
According to market watchers, many foreign investors are still avoiding the development sector because of the tendency in those companies to have low levels of basic capital, which does not bode well for short-term profit. The sector is no longer seeing demand for quick gains, and market watchers warn the trend is likely to continue this year.
