GPW performed quite well today. The star of the day was the Hungarian company MOL.
MOL company celebrates huge election win
Today the Hungarian company MOL gained the most, rising 10.6% throughout the session. Analysts say this is the effect of the victory in Hungary by the Tisza party. Experts point out that the change of government will lead to the payment of EU funds to Hungarians, which should help the domestic economy.
The biggest decline was recorded by Plaza Centers, which lost 32% of its value. This is the result of its conflict with the Romanian government. In 2006 it signed a Public-Private Partnership Agreement with Romania concerning the implementation of the Dâmbovița/Casa Radio Center Project, which failed to be realized. The Romanian side demanded compensation from the Polish company (about 2 billion euros excluding VAT and interest). Now the case was to be handled by the International Centre for Settlement of Investment Disputes (ICSID), which returned the claims of the Polish company. Reason? Lack of jurisdiction.
The WIG index ended the session at 131,315 points, indicating a symbolic rise of 0.01%.
Chart. WIG index price
Source: TradingView
WIG20 "slumped" to 3,596.03 points, indicating a drop of 0.02%.
Chart. WIG20 index price
Source: TradingView
mWIG40 fell to 9,031.26 points, a decline of 0.05%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile sWIG80 at 17:00 "opened" at 30,393.35 points. The index rose by 0.55% in value.
Chart. sWIG80 index price
Source: TradingView
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Analyst reviews the session
The entire session was observed by Konrad Ryczko, analyst at DM BOŚ. As he pointed out, "the first 60 minutes of trading brought the expected lower opening of WIG20".
"We quickly returned to Friday's reference range. Currently the quotes indicate a 0.2% drop of the main benchmark. In terms of companies, it's worth mentioning the over 9% rise of MOL shares (dual listing with BUX). This is the effect of the weekend elections in Hungary, movements in the HUF, and the rising oil price again. The rise in energy commodity prices also lifts LWB (+5%). Additionally, we observed a dynamic decline in PXM (target dynamic suspension)", added the BOŚ analyst.
What happened later? As Ryczko continued, after 12:00 "the market structure did not change significantly".
"WIG20 remains close to Friday's reference point (0.4% decline). DAX loses less than 1%, and the oil price valuation did not change significantly with the higher opening (around 104-105 USD on WTI). The market again tries to price a scenario of higher energy carrier prices (Ormuz blockade by the USA), which in turn raises debt yields, where investors again have to discount the scenario of potential rate hikes. In Europe, the Hungarian BUX stands out positively with about 3% rise, other benchmarks show slight declines," he added.
At 17:00 he summarized the entire session, indicating that "the start of the week on the Warsaw floor ultimately did not bring major changes to the main index".
"WIG20 recovered the morning declines and finished trading close to Friday's reference. MWIG40 also did not record significant changes, and sWIG80 rose by 0.55%. Turnover on the broad market was just under 3 billion zlotys. Locally, within WIG20, it's worth mentioning the over 3% rise of Żabka Group shares. On the other side of the table were KGHM shares with a 2.5% decline," added the expert.
"A separate paragraph belongs to MOL (dual listing with BUX), which gained over 10%. Mostly this is the effect of the weekend elections in Hungary where the Tisza opposition won 2/3 of the votes, ending Orbán's 16-year rule. BUX was today the strongest index in Europe, and investors assume the new government will be more pro-European," highlighted MOL.
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