Summary: Poland's benchmark WIG30 ended the trading session down 2.31%, settling at a new one-month low. The market's retreat was driven by losses in the Basic Materials, Chemicals and Oil & Gas sectors, although several mid-cap and consumer-oriented stocks posted modest gains.
At the close in Warsaw, the WIG30 declined 2.31% to a one-month low. Market breadth was tilted to the downside: 325 issues fell, 207 advanced and 103 finished unchanged on the Warsaw Stock Exchange.
Top performers:
- Rainbow Tours SA (WA:RBW) finished the session up 1.31%, or 1.90 points, at 146.50.
- Benefit Systems SA (WA:BFT) added 0.93%, or 44.00 points, to close at 4,790.00.
- Zabka Group SA (WA:ZAB) rose 0.73%, or 0.19 points, to 26.32, reaching an all-time high in the process.
Lagging names:
- KGHM Polska Miedz SA (WA:KGH) led declines among the WIG30 components, slipping 6.89%, or 24.00 points, to end the day at 324.20.
- Jastrzebska Spotka Weglowa SA (WA:JSW) fell 5.67%, or 1.48 points, to 24.60.
- Tauron Polska Energia SA (WA:TPE) declined 5.61%, or 0.52 points, to 8.75.
Commodities and currencies: Energy and precious metals softened during the session. Crude oil for August delivery dropped 4.15%, or 3.04, to trade at $70.17 a barrel. Brent oil for September delivery fell 3.87%, or 2.97, to $73.83 a barrel. The August Gold Futures contract declined 2.99%, or 123.98, to $4,025.42 a troy ounce.
On the currency front, EUR/PLN moved up 0.23% to 4.29, while USD/PLN climbed 0.48% to 3.78. The US Dollar Index Futures traded 0.20% higher at 101.38.
Key points:
- WIG30 declined 2.31% to a one-month low, reflecting widespread selling across the exchange.
- Sector pressure was concentrated in Basic Materials, Chemicals and Oil & Gas, which the session identified as the primary drags on the market.
- Commodity price moves - notably lower crude and gold futures - accompanied the equity weakness and were recorded alongside modest currency shifts.
Risks and uncertainties:
- Sustained weakness in the Basic Materials, Chemicals and Oil & Gas sectors, which led the session's losses, could continue to pressure index performance.
- Further falls in oil and gold prices, highlighted by the session's commodity moves, introduce uncertainty for energy and mining companies represented on the exchange.
- Currency fluctuations, such as the moves in EUR/PLN and USD/PLN noted during the session, add an element of exchange-rate risk for exporters and companies with FX exposure.
Overall, the session combined sector-specific declines with broader commodity and FX trends, resulting in a notable down day for the Polish market. Individual winners were limited, while several large-cap mining and energy stocks recorded double-digit percentage moves to the downside within the WIG30.