From the end of the session, it is clear that the rally had two phases. In the first, which consisted of a gap and two hours of gains, the WIG20 captured most of today’s rise, then in the next six hours consolidated the morning jump into the night.
At the level of variables that determined the day’s outcome, one must mention the perfect growth mix composed of oil price declines – at the extreme point WTI and Brent contracts fell by about 9 percent – rising metal prices, dollar weakness and the associated strengthening of the zloty. The stance of other equity markets, which reacted to oil price falls and the news that Iran and the USA are close to signing a peace agreement allowing free passage of ships through the Strait of Hormuz, was also important. In subsequent hours doubts arose about the authenticity of a possible agreement, but markets kept almost all earlier gains, and oil continued to trade with a seven percent decline, meaning the commodity was about 10 percent cheaper today than Monday’s levels.
KGHM leads gains +10.49%!
The market environment and response to global impulses caused KGHM to be the leader of gains, rising 10.49 percent, while on the opposite side Orlen, overvalued alone in the WIG20, fell 2.26 percent.
From a technical perspective, the session should be considered a complete success for the demand side. The morning opening gap broke the index chart out of a consolidation around 3500 points and reinforced the break of the local downtrend, as the drawn white body combined with volume indicates a dynamic return of demand to the game. The whole sums up in a pattern where the market can again look toward the 3700 point area and the slightly higher record highs of the bull market.
