Tech stocks reshaping the Polish marketplace

“It is good to be perceived as an economy which is not only banks, industrials and energy” XTB Chief Economist Przemysław Kwiecień told Poland IN, XTB Chief Economist Przemysław Kwiecień tells PolandIN on the eve of the IPO of auction site Allegro.

“Obviously there will be the debate whether these tech stocks, not only in Poland but also globally are valued at too high levels,” the XTB economist said, referring to the consistent growth of digital economy companies both long term and over the period of COVID-19.

The tech sector has seen some significant corrections in its ascent during COVID. and the economist is of the opinion that there is always a risk that comes with the high returns.

The main indices on the Warsaw Stock Exchange have changed shape fairly significantly over the past couple of years. First CD Projekt the Polish developer of the Wticher 3 Series of games, based on the Andrzej Sapkowski novels, now a major Netflix series shot through the ranks of the top companies to lead it.

The developer overtook copper conglomerate KGHM with 30,000 employees and a rash of major banks.

Next to shoot up was Dino, the niche small town supermarket chain. Now it is the turn for the well-established household name Allegro, which has infiltrated the Polish language and culture in the way that Ebay has done elsewhere. “I found it on Allegro” is the stock phrase here, not “...on ebay.” Some 20 percent freefloat of the near PLN 10 bn company will be tradeable on the WSE on Monday October 12.

Click here to watch the full interview.