WIG20 growing the fourth week in a row – Money.pl

There’s a reason for the March ECB meeting was said for a long time. The bank’s actions have caused a stir in the market. Eventually they were received favorably, resulting kilkuprocentowymi zwyżkami indices on Friday. This allowed the WIG20 note rising fourth week in a row.

accentuated ends week WIG20. Quotations index groups the largest companies of the Warsaw Stock Exchange rose to its highest level in three months. Course you carries 1,910 points, while still at the end of January was below 1,700 points.

The developed platform is the result mainly fulminant end of the week associated with the most awaited event of recent weeks, which is the ECB meeting. The Bank is not surprised the fact that easing of monetary policy, but the scale of the action by the majority of experts was not expected. Recall that we are talking about the reduction in interest rates, extend the QE program and the introduction of TLTRO II.

Investors are counting on that money finally spill to the markets, conquering the valuation of assets. The same was observed raising the valuation of assets. On Friday, trading the major European indexes grew even more than 4 per cent., Making up for the losses from Thursday.

Immediately after Thursday’s conference, Mario Draghi cooled the hot heads of listed players, saying that more interest rate cuts will not be. In hindsight, however, that investors are more pluses than minuses of the whole situation.

For us the meeting of the ECB’s counterpart in Poland, or MPC. Here, however, there is no question of any fireworks. As expected, the Council on Friday decided not to cut interest rates. He concluded that the current level is conducive to maintaining the Polish economy on the path of sustainable growth and to preserve macroeconomic stability. At the same time he expressed concern about persistent deflation. According to the latest forecasts of the NBP in 2016 the average growth of prices will be 50 per cent. probability within the range of minus 0.9 to 0.2 percent.

The actions of central banks effectively overshadowed this week other events. The country once again erupted on the political scene in connection with the turmoil around the Constitutional Court. But this did not impact on investment decisions.

Investors from Europe quickly forgot about a fatal data from China earlier in the week. On Tuesday, the mood soured information on trade. In February, the balance of foreign second largest economy in the world fell to 32.6 billion dollars from 63.3 billion a month earlier. With almost 14 percent. reducing imports, exports declined by nearly 25.5 percent.

Returning to domestic backyard, it is worth mentioning an ongoing financial performance of the season. In recent days, several large companies have discovered the card. These include, among others, Synthos, Tauron Group Azoty and PKO BP. Investor sentiment after the announcement of the results turn out to be very different.

The weakest company this week among blue chips was Synthos. Loss on equity exceeded 7 percent. The same number, just in positive territory, is the largest Polish bank. The result PKO BP for the fourth quarter of last year, positively surprised analysts. Net profit amounted to 444.3 million zł. According to the announcement of bank representatives for distribution among shareholders can hit this year in the form of a dividend of about 50 percent. profit, which for the year amounted to 2.61 billion zł.

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the above text is an expression of personal opinion and the views of the author and should not be construed as a recommendation to buy or sell securities.