Skarbiec TFI: Foreign and local investors' interest in Polish companies is growing

by   CIJ News iDesk III
2024-06-06   10:21
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There is a noticeable increase in interest in Polish companies, both among international and local investors, but it is at an early stage, according to fund manager at Skarbiec Towarzystwo Funduszy Inwestycyjnych (TFI) Krzysztof Cesarz.

"Stock market investors are slowly starting to enter holiday mode. This could be a moment of calm on the stock exchanges after the dynamic increases that have taken place since the beginning of the year. Our outlook for the current year, however, does not change. The Polish economy is growing steadily, the prospects of many sectors and companies are improving, the valuations of listed entities are still attractive in our opinion. We notice an increase in interest in Polish companies among both international and local investors, but it is at an early stage. All this fills us with optimism; we believe that the positive trends on the WSE will continue in the medium term," Cesarz wrote in the Society's monthly analysis.

He stressed that May was another successful month for holders of Polish equities. The WIG20, which groups the largest companies, gained 0.4% during the period. Medium (mWIG40 index) and small (sWIG80 index) capitalisation companies fared even better, gaining 4.2% and 1.8% respectively, the manager mentioned.

The final reading of GDP dynamics for the first quarter amounted to 2% y/y and showed the validity of predictions that the Polish economy is currently driven by an increase in consumption - both individual and public consumption, he added.

"The improvement in the situation of Polish consumers is recognised by clothing companies. The first-quarter financial results published by CCC or Pepco turned out to be better than expected; moreover, the companies signalled an increased willingness of the public to shop. Both companies in their respective indices (WIG20 and mWIG40) were growth leaders in May. Even LPP, which was stigmatised in March by a report issued by Hindenburg Research, losing more than 30% during a memorable session, has now recovered all its losses. The strong labour market, the strong zloty and the improving economic situation also favour other companies benefiting from the dynamic affluence of the Polish society," Cesarz wrote.

Volatile sentiment prevailed among Polish commodity companies. Increases in the prices of gold, silver and copper translated into a dynamic and, for many, unexpected rise in KGHM's share price. In addition, increases in the prices of many raw materials on global exchanges, encouraged investors to buy shares in JSW, Orlen or Stalprodukt. However, there was enough optimism until around mid-May, when both commodity prices and the prices of the aforementioned companies corrected, he added.

Skarbiec Holding is a group whose activities include management of investment funds (open-ended investment funds, specialised open-ended investment funds, closed-ended investment funds) and management services for portfolios of financial instruments on order. 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

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