Demand returns to Warsaw stock exchange

The Warsaw Stock Exchange experienced a modest recovery on Friday, with domestic indices showing a slight rebound. After investors took profits the previous day following a strong period for the Polish market, buyers returned to the floor by the end of the week. The WIG20 index ultimately closed 0.64% in positive territory, though it faced challenges maintaining its gains.

Investor optimism was tempered by mixed sentiment across other European stock markets. While some continental exchanges continued their corrections, others tentatively attempted to recoup losses. Heightened tensions in the Middle East and the lack of progress in reopening the Strait of Hormuz contributed to a lack of investor confidence. Renewed threats from the U.S. toward Iran also pushed oil prices back up.

On the domestic front, selling pressure eased among the largest companies, creating favorable conditions for a rebound. Bank stocks performed exceptionally well, regaining favor and posting the most significant gains within the WIG20 index. Following a notable sell-off on Thursday, investors re-entered Orlen shares, supported by recovering oil prices. Other companies like CD Projekt and PZU also benefited from the improved sentiment.

Conversely, KGHM shares continued their correction, mirroring the global decline in copper prices. Holders of energy sector stocks and Dino also had little reason to celebrate, as these companies recorded another session in the red. In the broader market, the forces of supply and demand were more evenly matched. Polenergia and Datawalk shares stood out negatively. Polenergia surprised the market by not raising its share price in a recent tender offer from its main owners, while Datawalk disappointed investors with its quarterly results.