GPW has had another successful day.
GPW does well, but coal companies lose
Today the main disappointment came from coal companies: JSW lost 7.5% of its value, while Bogdanka fell as much as 8.12%. Where did these drops come from? It is the result of de-escalation in the Middle East and natural corrections. Both companies rose from March 2 to April 7: JSW’s price increased by 28%, and Bogdanka by 84%.
The best performer was XPlus, which rose today by as much as 24.5%.
How did the indices perform? WIG finished the session at 131,302.64 points, which means an increase of 1.3%.
Chart. WIG index price
Source: TradingView
WIG20, on the other hand, jumped to 3,596.84 points, which translates to a rise of 1.25%.
Chart. WIG20 index price
Source: TradingView
mWIG40 at 17 reached 9,036.06 points, which translates to a jump of 1.58%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile, sWIG80 ended the session at 30,228.51 points. The index rose by 0.25% of its value.
Chart. sWIG80 index price
Source: TradingView
See also: GPW must thank Donald Trump. Bogdanka shares lose heavily in value
Analyst looks at the session
As noted by Adam Stańczak, analyst and commentator at DM BOŚ, “Thursday’s Warsaw market close ended with gains in the main averages. WIG20 gained 0.52% with a turnover close to 1.97 billion PLN, while the broad market index WIG rose by 0.33% with a turnover slightly below 2.35 billion PLN.”
“On Thursday GPW was a market noticeably stronger than the environment, which resulted in WIG20 breaking a new bull record. Unfortunately, on Thursday the strength of WIG20 was mainly built on the strong stance of Orlen, which reacted to rising oil prices. (…) Summing up, WIG20 faces the chance to carry technical successes to the end of the week and maintain the breakout above resistance around 3,500 points,” Stańczak summed up Thursday.
How did the next day start? Friday’s session turned out to be much better.
“WIG20 finished the first hour of the session around 3,550 points with a cosmetic drop of 0.1%. From the perspective of the first 60 minutes of the session it is clear that the morning resulted in a slight pullback and a quick move into consolidation that has been ongoing since the fifth minute of the session. Consolidation is also sought by the German DAX, so the thesis that markets are waiting for the next impulse after the Wednesday response to the change in the Middle East remains constantly relevant. The whole sums up to a force balance that forces waiting for new variables,” Stańczak summarized the first hour.
What happened later? As noted by DM BOŚ analyst, “WIG20 ends the pre‑afternoon phase of the session with a gain of over 1%.”
“The market seems to respond to the rumor that the war in Ukraine may end or freeze. It is hard to verify how true the reports are, but European markets looked for reinforcement. In the case of GPW the dollar weakens and the zloty strengthens. The result is a march of WIG20 to around 3,596 points, which means the market is already testing another psychological barrier of 3,600 points and moving away from broken resistances around 3,500 points by more than the daily volatility measured by the 14‑session ATR,” the expert summed up.
The further fate of bulls and bears will probably depend on what happens in the Middle East. Peace talks between Iranian representatives and US politicians are set to begin on Saturday.
Read also: GPW again guarantees emotions. The session finale shocked strongly
See also: Capitea shares (-13%), Fon (-11%) and Big Cheese Studio (-10.8%) lose most today. Why is Creotech also down?
