At the beginning of the week, the WIG20 index reached its lowest level in a month on the stock exchange. During today’s session the rates of banks decreased. According to experts, there is a risk that these companies will pull down the rest of the market.
The beginning of the week was marked by the fall of WIG20 to its lowest level since January 5th. The scale of the decline in the indices on the Warsaw Stock Exchange was the largest among the European stock exchanges in Warsaw.
decrease in WIG20
According to data provided by Bankier.pl, following the session, the WIG20 index fell by 2.17 percent. WIG was down 1.83 percent. In turn, mWIG40 lost 1.53%, while sWIG80 decreased by 0.43%. Turnover reached PLN 958 million, of which PLN 760 million was attributable to WIG20.
– We were in a correction for several weeks, at WIG20 it took the form of a relatively narrow consolidation. We tried to break it last week, but to no avail. We are slowly approaching the lower boundary of this consolidation (checked on Monday, ed.) If it turns out that WIG20 breaks this level below, the correction, which has been horizontal so far, will take the form of a downtrend - Przemysław Smolinski, an analyst at BM PKO BP, told PAP Biznes, adding that in this case, the target range for the WIG20 index would be around 1,800 points. – However, even with such a scenario in the medium term, I would not talk about a permanent return of the downtrend, but rather about a constant corrective movement – emphasizes Smolinsky.
Banks will pull down the rest of the market?
According to Bankier.pl, banks’ exchange rates fell during Monday’s session. According to Smolinski, there is a risk that these companies will pull the rest of the market with them. In terms of sectors, banks (-2.45%) were the leaders in terms of discounts and the leaders in terms of turnover (PLN 190 million). Only media (-2.64%) and games (-2.63%) fell the most. In the black was only the automotive sector (0.64%).
In WIG20, the largest banks by capitalization have been declining since the opening of quotations on Monday, with PKO BP (-2.69 percent) and Pekao (-2.57 percent) leading the decline in this group of companies. The smallest decrease was recorded by mBank (-2.31%).
Source: Wprost
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