Warsaw Stock Exchange indices closed lower on Friday, giving back part of the gains made earlier in the week. The WIG20 fell 0.62 percent, the broad WIG dropped 0.5 percent, the mWIG40 slipped 0.05 percent and the sWIG80 lost 0.38 percent. On Wednesday the WIG20 had reached a record 4,267.00 points and the WIG a record 160,445.78 points.
Oil and inflation worries weigh
Brent crude rose above 116 USD per barrel as the conflict in the Middle East escalated further, reviving concerns about inflation. Gold fell nearly 3 percent below 4,000 USD per ounce, and the zloty weakened against the Swiss franc and the US dollar. The USD/PLN pair rose 0.6 percent on the day.
European markets also declined at the Warsaw close. The DAX fell 1.1 percent, the CAC 40 lost 0.7 percent and the FTSE 100 dropped 0.6 percent. In New York the S&P 500 slipped 0.5 percent, while the Nasdaq Composite edged up 0.2 percent.
Banks and turnover
The WIG-Banki subindex fell 1.9 percent on Friday, extending its decline to 5 percent over the week and 8.8 percent over the month. Total turnover in shares on the main market reached 2.5 billion zloty, of which 2.08 billion zloty was traded in WIG20 constituents.
Over the year to date the WIG20 has gained 30 percent and the broad WIG 33 percent. The WIG20 has risen 210 percent over the whole bull market.
Macro data and AI spending doubts
Friday’s PMI releases showed expansion but were noticeably weaker than September readings and market consensus in both Europe and the US. Investors also questioned the payoff from heavy artificial intelligence spending, while US Treasury yields above 5 percent increased competition for capital from bonds.
Political risk also looms in the US, where Congress elections are scheduled for 3 November. A Democratic victory could tighten AI regulation.
