Stock digest Wednesday 14.03.24

Commencing on a promising note, the trading day on the Warsaw Stock Exchange later saw a slowdown, particularly impacting banks, resulting in a 0.7% decline in the WIG20 index. Conversely, smaller entities in the mWIG40 and sWIG80 indexes exhibited resilience, each marking a 0.6% increase. Notably, among major corporations, Dino faced the sharpest decline at 3.3%, whereas KGHM emerged as the frontrunner, posting a substantial gain of 2.8%.

Total trading volume amounted to 1.49 billion PLN, with the lion's share, 1.28 billion PLN, being attributed to the WIG20 index. While trading activity in Europe remained relatively stable, with the DAX index holding steady and the CAC40 index recording a modest uptick of 0.6%, American markets witnessed a downturn, with the S&P500 index declining by 0.2% and the Nasdaq by 0.5%. The Polish złoty exhibited a slight appreciation against both the euro and the dollar. Additionally, bond yields saw an uptick both domestically and internationally, alongside a similar trend observed in ten-year bonds. Brent crude oil prices surged by 2.6%.

Allegro's financial performance for the final quarter of 2023 aligned closely with expectations, albeit with a slightly subdued growth trajectory. It is speculated that certain one-time occurrences may have provided marginal support, estimated at around 30 to 40 million PLN. Prospects for early 2024 seem tempered, falling short of initial hopes, resulting in a somewhat underwhelming sentiment.

Orlen reported heightened profitability in 2023, with EBITTDA profit and net profit of the group surging by 7.2 billion PLN and 5.8 billion PLN, respectively. This increase can be attributed to a strategic shift in accounting practices related to LNG gas transactions. Given Orlen's proactive management of these transactions in 2023, impacting cash flow dynamics, the adjustment is viewed as consequential but not overly concerning. However, apprehensions arise regarding the reluctance to divest the Polska Press newspaper company, particularly from the perspective of corporate responsibility.