Sharp Sell-Off on Warsaw Stock Exchange; Banks Hit Hard Amid Geopolitical Fears

The Warsaw Stock Exchange (GPW) saw a sharp sell-off on Friday, with the main WIG20 index losing approximately 1 percent. The decline was heavily influenced by major banking stocks and KGHM, as investors grew cautious ahead of the weekend due to rising tensions between the United States and Iran.

This downturn on the Warsaw market mirrors negative trends observed in international exchanges. Thursday's session on Wall Street ended with significant losses, particularly in chip manufacturers' stocks. Major Asian markets also closed lower on Friday morning. European markets experienced selling pressure as well, though the impact was less pronounced initially.

Investor attention remains focused on the Middle East. Escalating conflict between the US and Iran has prompted investors to reduce their exposure to risky assets, leading to widespread selling across stock markets. In Warsaw, banking stocks and KGHM, which is sensitive to global copper prices, were particularly hard-hit.

While most large-cap stocks declined, a few, including PGE, Pepco, and Żabka, saw slight gains. The broader market also experienced significant selling pressure, with two declining stocks for every one that rose. In the mid-cap mWIG40 index, electronics distributors AB and Asbis led the losses, while in the small-cap segment, Digital Network shares fell nearly 5 percent.