ECB drives the boom on the Warsaw Stock Exchange. How long? – Money.pl

ECB drives the boom on the Warsaw Stock Exchange. How long? – Money.pl

2015-01-23 18:00

Photo: Investio

Author: Robert Richter

In the market it was just another one ???? week event. This event was naturally conference of the European Central Bank, Mario Draghi, which announced the historic step of this institution. On the horizon is, however, another black cloud, whose continued existence will be decided in a few days.

The ECB decided to purchase assets worth 60 billion euros a month, which begins in March and ends probably in September 2016 when previously it has been decided to extend it. It means so the program with a total value of at least 1.1 trillion, and so far more than analysts expected. The size of each bond purchase Eurozone countries will depend on the size of the country’s GDP, the Bank has reserved the same time, it takes into account the investment-grade bonds. At the same time, the ECB intends to buy up as corporate bonds. In addition to the introduction of the purchase, the bank has lowered the cost of loans under TLTRO, from 0.15 to 0.05 percent.

Investors reacted to this information a huge sell-off of the euro, and the immediate purchases on the trading floors. Euro in the past two days lost nearly 3 percent. of its value, while European stock indices closed the week at around 4-6 percentage pros.

So euphoric reactions are caused by the departure of an effective forum to fight deflation in the euro area, because this is not the goal of the ECB. Purchase of assets will positively affect mainly only on the financial markets, rather than the European economy as this, is significantly different from the US, where QE has brought some improvement. The ECB may not, however, do not take action to reduce the risk of being accused of passivity, while copying the actions the US Federal Reserve will not be enough to respond to the problems of the Eurozone. However, buying bonds should drive the stock market boom, which also can give Polish Parkiet, especially the main index, the company is significantly overvalued relative to the levels of their last years.

Before European markets, however, is another threat – Greece. On Sunday, there will be elections, in which most likely will win Syriza. Although it is virtually a foregone conclusion (wins in all polls), it is nieprzesądzone its final position in relation to the restructuring of the debt, and most of all the steps that the party decides to take to the creditors fulfilled her request. To assess this, but you have to wait until next week because it was only after the victory remains to be seen what plans, and above all, the ability (in the context of the parliamentary majority) will have Alexis Tsipras.

Poland

The data for the Polish economy, which met this week to surprise positively. Salaries Poles not increased the forecast 3, but about 3.7%, while the number of people employed rose by 1.1%. Even more surprised industrial production, which in December recorded an annualized increase of 8.4%, although analysts had expected an increase only at the level of about 4-5%. Most strongly increased production of all types of equipment – computers, machinery and equipment or vehicles. One of the main reasons for such a significant improvement is a depreciating dollar for some time, which makes our products are perceived abroad more attractive.

WIG 20 this week recovering losses due to unexpected decision of the Swiss National Bank. Growth fueled expectations particularly first and then pricing decisions of the ECB. Increases in such a place is a positive sign, because it gives hope for puncture resistance in the vicinity of 2380, without which there is no way to continue moving up.

Top News of Polish companies.

First, among large companies on the Warsaw Stock Exchange, which published results for the last quarter of 2014 years is PKN Orlen. The Company reported a net loss of over one billion zlotys, almost twice than analysts predicted. Although during the session fall in the share price exceeded 2%, however, investors are buying them moved over the course line. Orlen przyokazji publication announced that pay more than the 2014 dividend, which can take up to PLN 1.5 per share.

February 25, shareholders of BNP Paribas Poland and BGZ decide on the merger of the two banks. This will involve the transfer of assets to BNP BGZ, and the increase in the capital of the latter, from 56 to 84 million, through the issue of shares. Issued shares of the shareholders of the Bank BGZ. In this way, a Bank BGZ BNP Paribas, whose shares will be listed on the Warsaw Stock Exchange, and it will be the seventh largest bank in Poland.

JSW may have problems with its employees. Company terminated three collective agreements, with the consequence that the miners working there to embark on strikes. The point is of dependence on the outcome of the annual bonus of the company, maintaining the level of salaries and reduce the coal. If the austerity measures are not introduced, the company threatens the loss of liquidity. Miners but insists on her and on Monday and Tuesday to hold a referendum strike and protests are planning to start as early as Wednesday.