GPW turned green today. Why? A ceasefire in Iran.
GPW influenced by Middle East events
The Polish exchange rose today thanks to Middle East events: the USA, Israel and Iran agreed to sign a ceasefire.
As a result, during the Wednesday session the best performer was Pure Biologics, which gained about 14 % in value. This is however more a result of the ongoing talks with BioFund, which could lead to the fund acquiring 49.99 % of Pure Biologics.
“The transaction is conditional. Its closing depends on the company, with BioFund’s support, securing equity financing of at least 50 million PLN gross, completed simultaneously with the transaction closing or directly before or after. (…) If the financing condition is not met, the agreement will automatically expire,” the statement read.
Investors in Bogdanka (-16.7 %) fared poorly. This is more likely due to the potential end of the war in Iran (the company had risen sharply over the last month while the conflict continued).
The WIG index finished the session at 129 200.67 points, a jump of 3.31 %.
Chart. WIG index price
Source: TradingView
WIG20 “priced up” to 3 533.95 points, an increase of 3.43 %.
Chart. WIG20 index price
Source: TradingView
mWIG40 “jumped” to 8 918.69 points, a value increase of 3.32 %.
Chart. mWIG40 index price
Source: TradingView
Meanwhile, sWIG80 at 17:00 was at 30 193.93 points. The index rose by 1.49 % in value.
Chart. sWIG80 index price
Source: TradingView
See also: GPW in green. Capitea shares rise sharply
Trump’s effect?
As Adam Stańczak, analyst and commentator at DM BOŚ, noted in the morning, “early cash market trades place WIG20 around 3 520 points.”
“European markets spent the first hour of the session in a fairly standard balance of forces. After the morning openings, gaps pushed indices into consolidation and waiting for new impulses. GPW fits into this consolidation with WIG20 after the morning rise. (…) Technically, it’s important that WIG20 stays above 3 500 points, a level that bulls must maintain for the rest of the session,” the analyst added.
At the end of the day he noted that “Wednesday’s session at the Warsaw Stock Exchange ended with strong gains in the main indices.”
“WIG20 gained 3.43 % with a turnover exceeding 3.26 billion PLN, while the broad market WIG index gained 3.31 % with a volume indicator showing over 3.90 billion PLN. The rally was dominated by a sudden lift in risk appetite and a globally aligned GPW response to the two‑week ceasefire in the Middle East war,” he added.
In his view, “from GPW’s perspective, strengthening metals and a weaker dollar were also important. Nevertheless, the final WIG20 change was largely a derivative of the index’s correlation with the environment, where the German DAX gained almost 5 %, and Wall Street sought gains amid a double‑digit drop in oil prices. The session’s flow was relatively standard for rallies dominated by a market’s sudden reaction to external impulses,” the BOŚ analyst summarized.
“Considering the market’s sensitivity to equal levels and the fact that technical resistance on the WIG20 chart must be sought in a very distant past, players’ focus shifts to the psychological barrier 3 600 points,” he advised investors.
Read also: GPW again delivered emotions. The session finale surprised strongly
See also: Capitea shares (-13 %), Fon (-11 %) and Big Cheese Studio (-10.8 %) lose the most today. Why is Creotech also down?
