How is the Warsaw Stock Exchange coping with uncertainty? Not very well. The situation in the Middle East has brought a slight fear back to the markets.
The Warsaw Stock Exchange still fears war
Today the worst performer was OPTeam, which lost as much as 11.6% of its value, while the investment hit was the company MDI Energia (+9.3%).
The WIG index ended the session at 128,886.71 points, a decline of 0.70%.
Chart. WIG index price
Source: TradingView
WIG20 spent the whole trading day at 3,502.06 points, a decline of 0.76%.
Chart. WIG20 index price
Source: TradingView
mWIG40 at 17:00 closed the session at 8,919.38 points, a decline of 0.41%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile sWIG80 fell to 30,863.43 points. This means the index lost 0.67%.
Chart. sWIG80 index price
Source: TradingView
See also: Herkules shares like a mythic hero. The Warsaw Stock Exchange fears another phase of war.
Expert suggests caution?
Michał Pietrzyca, chief technical analyst at BOŚ Brokerage House, described what was happening on the Warsaw Stock Exchange from the morning.
"A few minutes after the opening, WIG20 maintained a moderately positive tone, rising by about 0.4% to 3,542.91 points, after starting around 3,530 points and a morning high of 3555 points", he wrote in his report.
He noted that "the growth structure is, however, selective and clearly driven by the financial sector – the strongest gains are from mBank (+1.8%), PZU (+1.7%), Pekao (+1.3%) and PKO BP (+1.4%), confirming that banks remain the main engine of the bull market on the Warsaw Stock Exchange."
"From a technical perspective, the index remains in a correction after an unsuccessful move above 3,700+ points, but still stays above the key support around 3,474 points and clearly above the 200‑day average at 3,116 points, sustaining the medium‑term uptrend. Current levels are below the Bollinger Band average (3,615 points), indicating that the market is still trying to stabilize after the earlier bullish impulse. RSI around 54 points remains neutral, while CCI around -96 points signals a clear cooling of short‑term momentum," he described the technical situation.
Already after the first hour of trading, WIG20 "clearly improved the morning picture".
"The growth structure remains very selective and still largely based on large, liquid financial companies – the strongest performers are PKO BP (+1.36%), PZU (+1.41%), Pekao (+1.33%), and also mBank (+1.14%) and Alior (+2.11%), confirming that the banking sector has again taken control of the index. Growth is also aided by Orlen (+1.31%), and pleasantly surprises with Pepco (+1.62%), slightly widening the market relative to the opening," the analyst described.
Technically, WIG20 rebounded "after the earlier cooling and returned above 3,550 points, eyeing the first major supply zone at 3,615 points (the middle Bollinger Band)."
"Support around 3,474 points remains key, not breached, and maintaining levels above this zone sustains the medium‑term uptrend. RSI rises to about 54–55 points, indicating a rebuilding of momentum, though without signs of over‑buying, and CCI remains negative (around -85), signaling that the move is currently a bounce in a sideways trend," he added.
Today the markets were dominated mainly by fear. As Marek Rogalski, chief analyst at DM BOŚ, pointed out, "the prospect of reaching an agreement with Iran that would restore traffic in the Strait of Hormuz looks increasingly more distant", and "the USA seem to be increasingly lost, lacking ideas for further scenarios."
Read also: Warsaw Stock Exchange with a hint of red. Atende shares (+12%) rise at record pace, JSW (+2%) surprises with data.
See also: CD Projekt shares stir the gaming market? Expert: "Sector leaders can often pull smaller entities along."
Source: Bossa.pl
