Stock digest Wednesday 19.03.24

Dis week's first trading day on the Warsaw Stock Exchange saw a lot of trading activity, especially for LPP, which was trying to recover from last Friday's losses. The trading volume for LPP's shares exceeded 1 billion PLN again, and their share price went up by 20.5%. But other companies in the WIG20 index mostly went down, like Pepco, Kruk, and JSW, which had the biggest drops. Overall, the main companies' index ended the day the same, but the mWIG40 and sWIG80 indexes went down. In the US, the stock exchanges went up, while in Europe, they didn't do as well. The Bank of Japan stopped their policy of negative interest rates and raised interest rates for the first time in 17 years, but they didn't say they would make it harder to borrow money more. This made the yen weaker. The Polish złoty lost some value against the euro and the dollar, but the interest rates on Polish bonds went up, especially for ten-year bonds.

We looked at the results that Dom Development published for the last quarter of 2023 normally. Their net profit was 200 million PLN, which was what we expected.

But the results for the last quarter of 2023 for MLP Group were better than we expected. This was partly because they were expecting a big increase in building stuff over a few months. We think this is good news.

We also looked at the results that Wawel presented for the last quarter of 2023. Both their EBITDA and net profit were better than we expected. They also said they want to pay a bigger dividend than we thought (35 PLN per share). But their bosses said they're worried about how much money the company will make in 2024 because the price of cocoa is going up a lot.

The Minister of Digital Affairs said that the gaming industry in Poland will get help from the government. They said they won't give an unlimited amount of money, and everyone should have a chance to get help. But they didn't give more details yet. We think this is a little good for the industry, even though in the past, it wasn't always clear if getting help from the government helped a company be more successful.