WSE: Mid session comment

The morning readings of PMI indices for the European market were not much different from the expectations and have been welcomed. It looks that the whole economic area copes well with Brexit, which seems to have no impact on economic growth. The data result in new peaks in Paris and Frankfurt, where increases reach 0.8%.

Unfortunately, this noticeable improvement in sentiment in the world went unnoticed on the Warsaw market and the southern phase of trade coincides with plotting new session lows and further remoteness from the level of 1,800 points. To strongly falling valuation of PZU and Pekao shares joined another critical for the WIG20 index components such as PKO, PKN or PGE.

At a time when the Warsaw Stock Exchange recorded minimums with a fall of about 1 per cent, the Frankfurt DAX improves the session peak rising to the level of 10,600 points, an increase of nearly 1 percent.

Thus it remains firmly established downward trend in the spectrum of blue chips, and in opposition to still better small and medium-sized companies that are trying to take advantage of better global sentiment.

At the halfway point of the session the index WIG20 was at the level of 1,780 points (-1,13%) and with the turnover of PLN 318 mln.