Equity trading turnover in the first 6 months of 2020 reached a record PLN 131 bn, the Warsaw Stock Exchange Chairman Marek Dietl announced on Friday, after a rollercoaster week on the Warsaw and global exchanges.
"High volatility in the first quarter caused stock exchanges across Europe to record high turnover values,” said the exchange’s boss Marek Dietl. “Rapid drops and subsequent increases in share prices attracted 70,000 new investors to the capital market,” he added.
Mr Dietl singled out technology stocks as the area in which the greatest gains were made “The value of the WIG.GAMES index, including the largest game producers on the WSE has increased by almost two-thirds since the beginning of the year," he said.
Volatility has been the name of the game this week on both Poland' and world markets.
On Thursday stocks plunged by 3.4 percent on the WSE. The valuation of tech stocks and niche biotech firms in the Warsaw market’s equivalent to the Nasdaq: -the New Connect Index (NCI) - fell by 15 percent, the biggest one-day fall in its 13 year history.
Much of the change may have been due to profit taking as investors head off for their August vacation and some stocks made up for a lot of the losses on Friday, The NCI gained 7.3 percent today.
Thus closes a tumultuous week on exchanges worldwide. Gold and silver markets values reached all time highs and the dollar was very volatile, awaiting news from the Fed, which ruled to keep interest rates stable.
Meanwhile, news of a 9.5 percent drop in US GDP in the second quarter and major profit announcements by top tech firms there also influenced the picture in Warsaw.
The WSE Chairman’s inference that volatility is all part and parcel of a healthy market may serve to assuage investors' doubts about whether to keep their money on the exchange.
However, news about new COVID-19 cases in Poland going over the 600-mark give a signal that there is more uncertainty about outcomes, both in Poland and elsewhere this year.