On Wednesday marks exactly one month since the changes in the Management Board of KGHM. The new head of the company was Krzysztof skin. Since then, the share price of the copper giant rose by 18 percent. What happened to that company’s securities have gained so much value?
The President of each company must be lucky. In recent months, the management of KGHM, the wheel of fortune is certainly not conducive to the former President of Herbert Wirth, fate but smiled at the new head of the company.
Markets are counting on the cooperation of the new president with the State
One factor that favored the stabilization of the share price was, paradoxically, a change of CEO. It not concerned about the lack of trust of shareholders to President Wirth. More important was that the company was on the cusp personnel. And as history teaches companies, which are expected to change in the leadership, even temporarily lose value. It is also no secret that the former head of the company did not enjoy the confidence of the current government. This in turn could suggest possible conflicts. What other president skin. The industry believes that its cooperation with the largest shareholder of KGHM, which is the State Treasury, will be very good.
Do you also need to add that in anticipation of the personnel changes, investors played under the no. It is also obviously not conducive to the stabilization of the share price of KGHM. The change has cut so all the speculation and calmed the mood.
The new management does not promise “pears in the sky”
What is important is the new president is not an unknown person. Taking also into account the presence on the board of the corporation known Miroslaw Bilinski mood of uncertainty disappeared. Especially since the new management has not promised to the proverbial “pears in the sky”, eg. In the area of wages.
This KGHM helped the stock market, not the stock market concern
Often increase stock prices of companies is due to the general improvement of the situation on the stock market. However, this is not so in the case of KGHM.
The WIG20 index, which brings together the most important and largest companies listed on the Stock Exchange in the last month rose by about 2.5 percent. Also, the WIG rose in this period of time of a similar size. As you can see it was rather the opposite – more KGHM contributed to the growth indices than they entailed the share price of copper companies.
Grow share prices of other companies of copper in the world
Pull the share price could KGHM copper other companies in the world. If the shares of other mining companies would be greatly zwyżkowałyby, would reflect positively on paper KGHM. Is that so?
Stocks Glencore Xstrata in the reporting period grew by over 30 percent. – Of about (after conversion for our currency) 100 zloty more than 130. A slightly smaller percentage increase was recorded securities of Rio Tinto. Third of February is not paid for the equivalent of 1,685 zł. Today, it is about 1904 zł. From 643 to 728 zlotys increase the value of the shares of another global player in the metals company BHP Billiton.
As you can see, uplift recorded all metal companies, although increases were different. This fact was dependent on how behaved metals on world stock markets.
Gold is pulling silver
For KGHM very important factor contributing to the increase in stock prices was the information Abort the gold bear market period of several years. Since the beginning of the precious metal price has increased by 20 percent. And though he KGHM is not a leader in the metal, it is also the largest producer of silver in the world. More than 1,000 tons of annual production has its own dimension. Meanwhile, the market average situation is the fact that silver is going in the direction it sets the gold. Although sometimes fluctuations in both exchange rates vary quite significantly, however, the overall trend is very similar.
What has happened will continue with the course of KGHM? Hard to say. Although silver is important in the balance of finance tycoon, it is key to the assessment of the company is what will happen on the copper market. If metal prices go up, the company and the board will have a reason to smile.
Dariusz Malinowski
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