What happened on the GPW today? The session turned out to be calmer than yesterday’s.
GPW: it was calmer, bulls are waiting
The best performer today was the company Energoinstal, which thanks to a new agreement with Orlen gained about 23% during the session. The worst performer was the company Unfold (-7.7%).
The WIG index ended the session at 129 621.06 pts, which means a jump of 0.33%.
Chart. WIG index price
Source: TradingView
WIG20 “rose” to 3 552.48 pts, which translates to an increase of 0.52%.
Chart. WIG20 index price
Source: TradingView
mWIG40 fell to 8 895.59 pts, which translates to a correction of 0.26%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile, sWIG80 at 17:00 was at 30 152.13 pts. The index therefore fell by 0.14% of its value.
Chart. sWIG80 index price
Source: TradingView
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Analyst summarizes
Everything was watched by Adam Stańczak, analyst and commentator at DM BOŚ. He immediately in the morning pointed out that “the first cash market trades translate into a slight decline of WIG20”.
“The index lost 0.4 percent due to a midday overvaluation of KGHM and banks, when yesterday’s gains were weak for Orlen. A particular weakness of Allegro is noteworthy. The company overvalues itself after the information that its share package was put up for sale at 25.60 PLN while the market price is above 27 PLN,” he added.
In his opinion, the morning “market behaviour” was “in a sense a reversal of yesterday’s balance of forces and mainly a correction of the midday rally, which is dictated by jointly higher oil and pullbacks in the base markets, where the German DAX lost at the start about 0.4 percent.”
“Technically, demand keeps the WIG20 chart above the broken yesterday resistance zone around 3500 pts, so there is no change on the chart that would require reacting to a falling opening,” he informed investors.
“WIG20 finished the first hour of the session down by 0.3 percent. The index is trading at levels set in the first minutes of the session, when the WIG20 range narrowed to a few dozen points. In the foreground, the Allegro company is constantly trading, having generated over 100 million PLN in turnover, while the WIG20 market added 340 million PLN. The company also accounts for a quarter of the total market turnover,” he continued.
“Technically, WIG20 consolidates around 3520 pts, so it remains above yesterday’s broken resistance around 3500 pts. Without falling below the psychological barrier, the pullback will only be a consolidation. A decline in WIG20 should be viewed through the prism of analogous behaviour of the surrounding market, which, viewed through the German DAX, falls by 0.4 percent after yesterday’s rise of over 5 percent – consolidating after the midday jump to the north,” he added.
After a few hours he pointed out that “the middle phase of the session placed WIG20 above yesterday’s closing level, which translates into recovering morning losses and – with a close at the current level – would give a new bull‑run record in the EoD perspective.”
“The index stays above 3500 pts and expands the safety margin for the second half of the session. In fact, falling below 3500 pts now requires a 1.2 percent drop of the index. The margin appears important because the market seems to play against the surrounding environment, which in the afternoon placed the DAX near the daily low and increased the German average decline to 1.2 percent,” he summarized.
Overall, bulls are waiting for the situation in the Middle East to develop. If peace holds, we may see further rebounds.
Read also: GPW again guaranteed emotions. The session finale was strongly surprising
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