Mixed Performance on Warsaw Stock Exchange: Retail Stocks Rise, Banks Fall Amid Global Tensions

The Warsaw Stock Exchange (GPW) experienced a mixed session, with the main index holding near Monday's close thanks to retail companies, while banks lagged significantly. Allegro shares surged 7.5% after reporting a 11.5% year-on-year increase in adjusted EBITDA for Q2 2026. Pepco Group also saw positive market reaction to its share buyback details, with Modivo and LPP also showing strength.

In contrast, the banking sector, which had recently reached record highs, faced a downturn. Pekao lost 3.7%, Alior dropped 2.3%, and PKO BP fell 2.2%. Despite these declines, the WIG20 Total Return index remained near its all-time high, indicating overall market resilience.

The Polish market appears largely unfazed by global geopolitical tensions, particularly the heightened conflict in the Middle East. While Monday was challenging for U.S. tech stocks, especially semiconductors, Tuesday saw a calmer session in East Asia. The Kospi rose 0.84%, but Taiwan's TAIEX fell 1.4%. Japan's Nikkei 225 gained 0.74%, and China's Hang Seng continued its upward trend.

Investors are closely monitoring currency markets, with the dollar strengthening globally. The euro weakened against the dollar, impacting the Polish zloty. EUR/PLN rose 0.3% to 4.34 PLN, and USD/PLN climbed 0.19% to 3.81 PLN, reaching its highest level in over a year. Meanwhile, commodity markets remain volatile, with Brent crude oil exceeding $87 a barrel and WTI surpassing $80.