The previous session on the Warsaw Stock Exchange was again marked by declines and uncertainty.
WSE still fears war
Today the worst again fell: MDI Energia (-10.42%). The best performed: Trans Polonia (+9.42%).
The WIG index ended the session at 128,508.77 points, a decline of 0.41%.
Chart. WIG index price
Source: TradingView
WIG20 closed at 3,487.99 points, a decline of 0.45%.
Chart. WIG20 index price
Source: TradingView
mWIG40 ended the session at 8,940.33 points, a correction of 0.23%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile sWIG80 fell to 30,700.96 points. This means the index lost 0.57%.
Chart. sWIG80 index price
Source: TradingView
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Analysts warn about the weekend
Adam Stańczak, analyst and commentator at DM BOŚ, noted that "the first cash market trades led to a 0.6% rise in WIG20, but soon a supply counter appeared."
"The main focus is on Orlen, rising 2.1% amid recent oil price hikes. PKN accounts for 30% of market activity. (...) Technically, WIG20's move around 3,525 points was too small to break the support zone near 3,500 points that has been defended for the last two sessions. Essentially, the opening barely enters the consolidation above 3,500 points, so the chart does not signal new moves," he added.
Ultimately, "WIG20 finished the first hour of the session around 3,498 points."
"The morning's picture also deepens the decline to around 3,483 points, but for now it does not lead to a stronger supply attack and the index remains in consolidation near psychological support. For WIG20 the market can only sustain consolidation, which always carries the risk of a break below," he added.
Marek Rogalski, chief analyst at DM BOŚ, highlighted the geopolitical aspect. He recalled that "yesterday evening President Donald Trump confirmed a hard line against Iran – economic strangulation, further blockades of Iranian ports, additional sanctions, and plans for renewed surgical, short‑term attacks on Iranian infrastructure."
"The goal is to force Iranians to start talks aimed at a complete abandonment of the nuclear program. Yesterday, amid these reports, oil prices surged," he added.
He noted that "yesterday there were talks between the US and Russian presidents – the conversation lasted over an hour and a half."
"One can guess that Trump wanted to pressure Vladimir Putin more on the Iranian regime – but at what cost?", Rogalski pondered.
In his view, investors will "again start fearing weekends (when significant military actions are usually taken)."
"Meanwhile, macro conditions are becoming increasingly tense. The Fed admitted yesterday that inflation is becoming a problem, though a more moderate message was ultimately adopted, but with a sharp split among its members – three 'hawks' demanded a statement that the Reserve is ready for rate hikes," he added.
Read also: MDI Energia shares return profits, ERG surprises with gains. WIG20 looks at the USA and Middle East
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Source: Bossa.pl
