Session progress on GPW again depended on geopolitical events.
GPW looks at the Middle East
The potential end of the war in the Middle East led to GPW clearly green today. The best performer was Compremum, whose shares rose by 14%. The largest declines were in the valuations of Enel-med (-6.8%), but not many gave up in this area, shares of Bogdanka fell by 6.6%.
Shares of coal companies - Bogdanka and JSW (-4%) - are losing due to the potential end of the war in Iran.
WIG index at 17:00 was at 132,821.48 pts, indicating an increase of 1.15%.
Chart. WIG index price
Source: TradingView
WIG20 rose to 3,636.72 pts, indicating a jump of 1.13%.
Chart. WIG20 index price
Source: TradingView
mWIG40 "soared" to 9,144.9 pts, indicating an increase of 1.26%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile, sWIG80 at 17:00 "settled" at 26,925.03 pts. The index therefore rose by 0.34% in value.
Chart. sWIG80 index price
Source: TradingView
See also: GPW must thank Donald Trump. Bogdanka shares lose value sharply
Analyst points to key factors
Michał Pietrzyca, chief technical analyst at BOŚ Brokerage House, in the morning indicated that "the opening of Tuesday's session on GPW brings moderately positive sentiment, supported by earlier gains on Wall Street and good mood in Asia, although the background still holds the topic of tensions on the USA–Iran line and high commodity prices.
"WIG20 rises at the start by about 0.8% to 3,623 pts, continuing the move towards the key resistance zone at 3,700–3,820 pts, set by the upper Bollinger Band limit. Technically the index remains in a short‑term uptrend, staying clearly above the SMA‑200 average (3,077 pts) and the middle BB line (3,446 pts), although an RSI of 72.17 already signals an overbought market," he described the technical aspects.
"The growth structure is relatively wide – at the start gaining among others KGHM (+1.7%), Pekao (+1.17%), PKO BP (+1.15%) or Budimex (+1.42%), supporting the index from the side of the largest components. Orlen (-1.16%) performs weaker, limiting the scale of WIG20 growth, but does not change the overall picture of demand advantage. Directional indicators (DMI) remain on the buyer side, with rising +DI (32.68), although a relatively low ADX (~18) indicates that the trend is just gaining strength," he added.
After the first hour of trading on GPW it became clear that "market support is the clear pullback in the oil market – Brent falls to about 97.9 USD (-1.5%), and WTI to 95.8 USD (-3.4%), reducing short‑term pressure on energy‑intensive sectors."
"The impulse also comes from reports of progress in USA–Iran talks, although the ongoing blockade of Iranian ports still introduces an element of caution. WIG20 stays in the range of 3,620–3,630 pts (about +1%), continuing the move near local highs and staying on the path towards resistance at 3,700 pts", he added.
At this stage, gains were mainly supported by banks and commodity companies: KGHM (+3.98%), PKO BP (+1.89%) and Pekao (+1.90%), and even CD Projekt (+3.06%).
As the analyst from DM BOŚ noted, "in the afternoon European equity markets maintain a clearly positive sentiment, driven by growing hopes for the resumption of talks between the USA and Iran and a scenario of diplomatic resolution of the conflict."
Against this backdrop, WIG20 rose then by about 1.1%, "joining the improvement of moods in base markets", which was maintained until the end of the session.
Read also: GPW responds to Middle East news. MOL shares react to Hungarian election results
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