Soaring Indexes

They weren't affected by political anxiety caused by Prime Minister Leszek Miller's announced resignation and uncertain future of his successor - Marek Belka. Analysts claim that the WSE became an object of foreign investors' interest then (mainly investment funds) due to the forthcoming Polish accession to the UE. As a result of the good mood on the WSE, the WIG index reached 1870 points and historical record peaks were set, with reference to the whole market index -WIG, crossing the 25200 points level. However, right after Easter, indexes started to decline. This was considered to be the beginning of the expected correction. Stockbrokers say that even expected favourable financial companies' results for the first quarter won't help because they have already been included in share prices. Taking the construction sector into consideration, most construction companies took advantage of the bullish market. Budimex's shares have risen by 40 percent this year and reached the historic level 50 PLN per share. On the one hand analysts claim that Budimex isn't big enough and even minor orders may cause a rise in its value. On the other hand, Budimex has attracted some investors recently, a sign of the improvement. Projprzem, which announced a dividend payment, has also risen in value. Mostostal Warszawa value remained stable, although Miejskie Przedsiebiorstwo Robot Drogowych has filed for MW's bankruptcy. However, during this period the highest rise in price has been recorded by Energomontaż-Północ. The company's board is predicting a net profit at the end of this year. Additionally, over 7 percent of its equity was acquired by Gloria Corporation, a company which cooperates with Energomontaż-Północ, which also resulted in its share price rising.

Contributed by:

Mirosław Kuk