8/09/2006

Poland: Fed will influence the future of Warsaw Stock Exchange


WARSAW (AFX) - During Tuesday's trading in Warsaw, the eyes of all investors were on the U.S. Fed and its rate decision, reported Puls Biznesu.

WIG20 ended 0.24 pct down at just under 3,000 points.

But greater importance is place on the Fed's decision later today which will be important for the future of the exchange as a whole.

It would be best for the Warsaw Stock Exchange if interest rates were not raised today nor in the upcoming months. Otherwise, the U.S. bonds will be more profitable and foreign capital will leave emerging markets such as Poland. Meanwhile during trading the blue chips did not change in value but small and mid caps were more lively.

Centrostal Gdansk was the best performer with a 42.2 pct jump after Zlomrex bought a 30.4 percent stake from the CEO of the construction company. A tender offer will have to be announced by Zlomrex which already has over 50 percent of the stock.

Asseco Poland soared 9.1 pct to a new record of PLN 240 on very good second quarter results.

Capital Partners was the worst performer with a 13 pct loss after its Russian partner OAO Novatek withdrew from the contract to deliver gas to its subsidiary CP Energia due to the changes in regulations.
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