Warsaw investors remain optimistic as WIG20 reaches a new high

The Warsaw market shook off an unpromising start on Monday. Before noon, renewed optimism pushed the WIG20 above 4,100 points, setting a new historic high. The broader WIG index also moved close to 155,000 points.

The advance came with limited support from other European exchanges, where investors showed little appetite for buying. Trading activity was lower than usual because U.S. investors had a day off, and market volatility remained contained.

Investors also largely ignored renewed tensions in the Middle East. Another exchange of blows between the United States and Iran, along with the threat of a complete closure of the Strait of Hormuz, no longer appeared to unsettle markets, although the developments pushed oil prices higher. More attention went to final second-quarter euro zone GDP data, which proved better than earlier, already positive estimates.

Energy stocks continued their rally. PGE and Tauron delivered the strongest contribution to the index rebound, each recording a fourth consecutive rising session. Buyers also targeted Modivo and CD Projekt, while Dino continued its recovery from a several-year low. KGHM and Orlen lagged clearly behind, and banks were generally weaker.

Shares outside the WIG20 had a less successful session. Krakchemia suffered the sharpest drop, losing almost 30% after the company announced that it had filed for bankruptcy. At the other end of the market, Coal Energy and defense-sector companies posted strong gains.