GPW today did not fare as well as on Friday. More precisely: capital moved from the recently rising stocks to those that were discounted on Friday.
GPW dominated by bears
Today the best performer was OPTeam, which gained as much as 16.13% during the session, and the worst was Novavis, which lost 19.59% of its value.
It is also worth highlighting Orlen, which in response to further geopolitical tensions (the re-blocking of the Strait of Hormuz and the spike in oil prices) gains value. Today its shares rose by 2.79%. CD Projekt disappoints, losing 2.18%. This clearly shows that capital is moving from companies that rose last week to those that fell during the same period.
Indeks WIG ended the session at 134 071.74 points, a decline of 0.83%.
Chart. WIG index price
Source: TradingView
WIG20 closed the session at 3 666.86 points, indicating a decline of 0.91%.
Chart. WIG20 index price
Source: TradingView
mWIG40 “settled” at 9 240.29 points, which can be translated to a decline of 0.72%.
Chart. mWIG40 index price
Source: TradingView
Meanwhile sWIG80 “rose” to 31 202.83 points. This means the index value increased by 0.06%.
Chart. sWIG80 index price
Source: TradingView
See also: WIG20 in green. Bogdanka shares (-9%) still lose, Medinice (+18%) the growth leader
What analysts say?
Marek Rogalski, chief analyst at DM BOŚ, warns that “Tehran is trying to show its claws – the Strait of Hormuz has been closed again.”
“The problem with the regime is that the war has led to a certain decentralization of the power center, which this ‘political model’ was not prepared for. Now, when you have to talk firmly and factually with Americans, it turns out there is no coherent scenario, only the fight of political factions? This, however, shows that a return to a full-scale war with the USA is unlikely,” he added.
Meanwhile Konrad Ryczko, DM BOŚ analyst, analyzed what was happening on GPW.
“On Friday WIG20 gained over 1.4%, setting a new record of the ongoing bull run, currently at 3700 points. It is now less than 300 points from historical highs. Weekend events suggest, however, that the start of trading may bring a slight cooling of sentiment,” he summarized the Friday session finale.
However, the “first 60 minutes bring expected declines on GPW.”
“WIG20 loses about 1.2%, fitting with European sentiment. At the same time there is no major panic, and the market hears that weekend events are part of building arguments in negotiations between the USA and Iran. The market remains under the full influence of Middle East events – any signal from the US administration will most likely be quickly reflected in valuations,” he added.
In the afternoon, the situation stabilized, but, as the analyst pointed out later, “most markets lose about 1-1.3% reacting to the nervous weekend in the Persian Gulf.”
“Nevertheless, the lack of panic after Friday gains suggests that the market remains relatively well positioned. Additionally, today’s dispatches suggest that Trump listened to the Pakistani side suggesting that the blockade of Iranian ports “ruins the negotiation climate.” Most movements on global indices erase only about 50% of Friday’s gains.”
Ultimately, markets remain under the influence of geopolitical events. The Tuesday session will depend on events that take place in the Middle East.
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