Skarbiec TFI: Dividends and companies' Q1 results should support the bull market on the WSE

There are still many arguments for the continuation of the bull market on the Warsaw Stock Exchange; in the short and medium term, quotations should be supported by dividends paid out and the started season of results for Q1 this year, according to fund manager at Skarbiec Towarzystwo Funduszy Inwestycyjnych (TFI) Łukasz Siwek.

"May is ahead of us, and thus a period in which we are bombarded with statistics related to one of the most famous stock market adages: ‘Sell in may and go away’. If we superimpose statistics about the behaviour of the stock markets in a US presidential election year on top of this, it is hard to come up with any meaningful conclusions. Although human nature makes us like to revisit history and established patterns, we prefer to look ahead, building on what lies ahead. In our view, there are still many arguments for a continuation of the bull market on the Warsaw Stock Exchange, which began in autumn 2022. In the short to medium term, listings should be supported by dividends paid and the earnings season for Q1 2024, which has begun," Siwek wrote in the Society's monthly analysis.

This year, companies will share exceptionally generously with investors, as the amount paid out will be as much as approximately 75% higher than in 2023, the manager stressed.

"In May alone, more than PLN 4 billion will go to institutional investors and we believe that this money will be reinvested on the WSE. The recently launched Q1 earnings season and, above all, the meetings with managements and the outlook for results in the following periods, will, in our view, build a positive message regarding the further path of results. In the long term, we should be favoured by the fact that Polish equities are still cheap and the Polish stock market has changed its status from ‘underweight’ to ‘overweight’ after years of being bypassed by foreign investors," Siwek added.

Skarbiec Holding is a group whose business is the management of investment funds (open-ended investment funds, specialised open-ended investment funds, closed-ended investment funds) and financial instrument portfolio management services on a fee-for-service basis. Skarbiec Holding S.A. is the sole shareholder of Skarbiec TFI S.A., which was established in 1997 as the fifth investment fund company in Poland and is one of the largest companies independent of any banking and financial group in Poland.

Source: Skarbiec TFI and ISBnews
Photo: Skarbiec TFI