Euphoric session on the WSE. The burden of the SSP has been lifted, but how long will investor enthusiasm last?

The turnover of almost PLN 3,3 billion is very impressive, as is the scale of growth of many companies with state treasury participation. The entire WIG 20 index increased by 5,31%, approaching the level of 2100 points. PEKAO and PKO BP banks, as well as Millennium Bank, gained the most. Apart from banks, investors' attention focused on Orlen, which gained over 8% and erased the "gap" that appeared after the dividend was cut. The above shows how much of a burden the governments of the last 8 years have had on companies with state treasury participation.

PPK participants breathed a sigh of relief

This had a negative impact not only on the results of the funds, but above all on the money of PPK participants, who currently, thanks to the change in the balance of power in parliament, benefited most from the change of power in Poland. Political burden from SSP has dropped significantly, and investors should now look to the coalition that will appoint new members of the supervisory and management boards of these companies. However, this is of course only a plan for 2024.

In front of us "relaxation" multipliers?

Yesterday's trading on futures market on WIG 20 was the highest since March 13, 2023. From the point of view of the chart and the momentum that appeared on the Warsaw Stock Exchange, as well as the "expansion" of multipliers for companies, the bulls' target may be around the July peak, i.e. 2200 points. Support may be provided around the opening gap of 2050-2000 points.

Closing the weakness gap against the S&P 500

Interestingly, only after yesterday's session did WIG 20 equalize the result with the American S&P 500, measuring rates of return since the beginning of the year. Since the second half of August, the Warsaw Stock Exchange has performed worse than the core markets and only now are those losses being compensated. The SPX result since the beginning of the year is 14%, and the WIG 20 result until yesterday's closing is 15%. Therefore, the Polish market was weighed against developed markets. The question remains whether the WSE will now be able to show better results than the Western stock exchanges, or whether we will soon fall into the same path as DAX or SPX.