WIG20 with a new record - such headlines will dominate the media today. The Warsaw Stock Exchange is regaining strength after weak weeks.
GPW Sponsored by Bulls, but One Company Has a Serious Problem
Let’s start with bad news: the company Plaza Centers is again falling in price. It’s all because of the 2006 case, when the company signed a public‑private partnership agreement with the Romanian government. It was supposed to build the Dâmbovița/Casa Radio Center: a shopping and entertainment complex of over 120,000 m² with a hotel and apartment block.
The project was not completed, resulting in Romania now demanding compensation from Plaza Centers: almost 2 billion euros (excluding VAT and interest). The Polish developer claims that the entire case was the fault of the Bucharest government, and the dispute is now handled by the London Court of International Arbitration (LCIA). By Monday the case was also in the offices of the International Centre for Settlement of Investment Disputes (ICSID), but the latter dismissed the Polish claims “due to lack of jurisdiction”.
As a result, investors are selling Plaza Centers shares, which have already lost another 9% in value.
At the same time, the record holder on the rise chart was Imperio, which rose by 16%.
The WIG index ended the session at 133 946,71 points, which means an increase of 0,85%.
Chart. WIG Index Price
Source: TradingView
At 17:00 WIG20 was at 3 665,94 points, which means a jump of 0,8%.
Chart. WIG20 Index Price
Source: TradingView
mWIG40 “rose” to 9 236,47 points, which means an increase of 1%.
Chart. mWIG40 Index Price
Source: TradingView
Meanwhile, sWIG80 ended the session at 30 832,47 points. The index value was therefore raised by 0,72%.
Chart. sWIG80 Index Price
Source: TradingView
See also: GPW remains under the influence of geopolitics. Bogdan’s shares fall, Compremum big winner
Analyst Points to Key Factors
Adam Stańczak, analyst and commentator at BOŚ Brokerage House, said in the morning that in the “outlined balance of forces, the GPW seems to have a chance for a growth opening that will sustain the WIG20 position in the region of the new record set yesterday.”
He already suggested focusing on the psychological level of 3 700 points, which was not broken today. During the Wednesday session it seemed, however, that there was a chance.
“WIG20 entered the second hour of the session with a rise of 0,6%, which translates to a position in the region of 3 660 points. The index is setting a new record of the bull market, which also means getting within about 40 points or 1,1 percent of the psychological barrier of 3 700 points.”
“Technically, the index continues the move within the last bullish wave, which means expanding the bullish wave to almost 17%. The last element indicates that local market over‑buying is rising and pressure to realize profits after the bullish wave. In essence, indicators are already in over‑buying zones, such as the RSI in the region of 74 points,” he added.
The end of the mid‑afternoon phase of the session brought the WIG20 back to the morning low region.
“The index also falls below yesterday’s closing level. The technical effect of the supply counter – built on impulses from the surroundings – is a candle without a body with a top shadow, which fits into the previously mentioned warnings about market over‑buying and the risk of profit realization. As always, one candle does not change the trend, but the chart layout starts to counter market optimism,” Stańczak reported.
Ultimately, a new ATH was drawn today at 3 666,9 points. If the situation in the Middle East does not flare up again, there is a chance that we will observe further bullish waves.
Read also: GPW responds to news from the Middle East. MOL shares react to election results in Hungary
See also: Capitea shares (-13%), Fon (-11%) and Big Cheese Studio (-10,8%) lose the most today. Why Creotech also down
