Wieslaw Rozłucki, president of the Stock Exchange Council: Unexpected events … – Interia

Unexpected political events increase the anxiety of investors

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The Warsaw bourse boom did not bring quite a bad economic situation of the country, where – according to forecasts and current readings – GDP growing at a pace more more than 3 percent. Mood did not improve too bad trading exchanges worldwide. While in the last year, the S & amp; P 500 rose by almost 7 per cent., While the German DAX by almost 15 per cent., Polish WIG20 fell by over 3 per cent., While the WIG rose by less than 3 percent.

– Remember that not only the economy determines the exchange quotations – says the news agency Newseria Investor Wieslaw Rozłucki, president of the Stock Exchange Council. – There are some political unrest, begin with the longer duration, ie Russian-Ukrainian conflict. However, this pregnancy, because it is a risk which is very difficult to quantify, evaluate numerically. In contrast, uncertainty remains and leads to caution.

The Polish investors also concerned about the persisting uncertainty on the domestic political scene. Slight declines started just after the first round of presidential elections to gain momentum after their allotment. Since then, the main index of the Warsaw market share lost approx. 8 percent.

– however, showed unexpected strength in our market and I think that until October, and perhaps longer, this uncertainty could persist – predicts Wieslaw Rozłucki. – It is true that I can say that and in the long term, and even in the medium, the Warsaw Stock Exchange has always been in some ways autonomous of the political developments. Investors looked at the results and prospects of companies, and not on political turbulence, but always in the vicinity of elections this anxiety increase.

In the long run, however, investors should not worry about the turbulence in world politics. Chairman of the Board emphasizes that the most important thing for investors is the condition of the economy because it translates to the profitability of companies.

– I do not think the political scene was becoming increasingly important, she always has some relevance and I think that just Now we’re in this next election period and you can expect more unrest and major fluctuations connected with it – says the president of the Stock Exchange Council. – But in the longer term, however, the stock market reflects the results and prospects of companies, rather than political events. And I can tell by watching the stock market almost 25 years.

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