The WIG, the oldest index on the Warsaw Stock Exchange (WSE), rose by 0.37 percent to its highest ever value on Tuesday while the WIG20, the index of the twenty largest companies, grew by 0.61 percent to a three-year record high, the WSE reported on Tuesday.
The WSE’s WIG and WIG20 indices set new records on Tuesday, 0.37 percent up to 74,736.92 points and 0.61 percent up to 2,472.33 points. The accumulated value of turnovers on the wide market amounted to nearly PLN 2.3 bn (EUR 500 mln). The accumulated value of the largest indexed companies’ turnovers amounted to PLN 1.7 bn (EUR 37 mln).The WIG closed at 74,736.92 points and the WIG20 at 2,472.33 points.
According to the Environment Protection Bank (BOŚ) brokerage house’s analyst Adam Stańczak, the stock market was dominated on Tuesday by fears for economic growth dynamics, questions about inflation and the series of blows to the economy from successive waves of the COVID-19 pandemic.
Mr Stańczak said that investors’ fears were hyped by the International Monetary Fund report that lowered 2021 economic growth forecasts. As a result, a downward pressure affected the WSE in the morning leading to a drop in the WIG20 by over 1 percent. The next hours, however, showed base markets limiting risk aversion, which resulted in the WSE focusing on the reduced discounts. On Tuesday, Amazon said it was introducing the Prime service for Polish clients — a product that will compete with Allegro’s Smart service.
Investors reacted by discounting Allegro’s shares by 6.4 percent, with a turnover close to PLN 370 mln [EUR 80.77 mln]. As Stańczak points out, turnover on Allegro’s stock gave more than a fifth of the market’s activity in the WIG20 and more than 15 percent in the overall market. “Allegro’s price drop was offset by rises in the 15 companies in the WIG20, however, and did not prevent the WIG index from gaining nearly 0.4 per cent. Technically, the session appears to be a simple continuation of the rise from previous sessions,” the analyst said.
The oldest index was introduced on the WSE’s first trading session on April 16, 1991, while the WIG20 debuted on April 16, 1994.