The foreigner returns
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After a quiet beginning to October on the WSE, when the indexes remained flat, the next few weeks witnessed an upturn
In the middle of the month, the blue-chip WIG 20 index almost reached the level of its late July high. The main reason for such a bullish ride was the return of foreign investors and their greater confidence in emerging markets as the likelihood receded of US rate hikes. Of course, over the last few weeks, some slight corrections took place, but as companies get ready to publish their third quarter results, analysts believe that there is a chance for further increases. The Polish economy is in an extremely good condition, with the Central Statistical Office announcing that GDP growth in the third quarter will be as good as in the second quarter (5.5 pct y/y). And the good health of the economy will be surely be reflected in the earnings of listed companies, including those in the construction sector.
The main highlight of the month was the successful entry of Dom Development on the WSE with a whooping gain of 53.5 pct to PLN 130.5 at its debut on Thursday, October 26th. The company raised over PLN 400 mln from the floor, making this IPO one of the biggest this year. Dom Development is the second largest developer in Warsaw in terms of the number of apartments completed. And another construction company, Pol-Aqua, announced its plans to enter the WSE next year.
Meanwhile, one of the biggest construction companies, Budimex, posted a net profit of PLN 0.27 mln, which was below market expectations. In November, more companies are going to publish their third quarter results.
Polnord is the company experiencing the largest increase in its share-price during the last month (see the table below) – it seems that investors judged its merger with Prokom Investments highly. Polnord is intended to be the main development wing of the Prokom group.
In the middle of the month, the blue-chip WIG 20 index almost reached the level of its late July high. The main reason for such a bullish ride was the return of foreign investors and their greater confidence in emerging markets as the likelihood receded of US rate hikes. Of course, over the last few weeks, some slight corrections took place, but as companies get ready to publish their third quarter results, analysts believe that there is a chance for further increases. The Polish economy is in an extremely good condition, with the Central Statistical Office announcing that GDP growth in the third quarter will be as good as in the second quarter (5.5 pct y/y). And the good health of the economy will be surely be reflected in the earnings of listed companies, including those in the construction sector.
The main highlight of the month was the successful entry of Dom Development on the WSE with a whooping gain of 53.5 pct to PLN 130.5 at its debut on Thursday, October 26th. The company raised over PLN 400 mln from the floor, making this IPO one of the biggest this year. Dom Development is the second largest developer in Warsaw in terms of the number of apartments completed. And another construction company, Pol-Aqua, announced its plans to enter the WSE next year.
Meanwhile, one of the biggest construction companies, Budimex, posted a net profit of PLN 0.27 mln, which was below market expectations. In November, more companies are going to publish their third quarter results.
Polnord is the company experiencing the largest increase in its share-price during the last month (see the table below) – it seems that investors judged its merger with Prokom Investments highly. Polnord is intended to be the main development wing of the Prokom group.
