The Stock Exchange Doesn't Love Taxes [Closer to the Stock Exchange]

The beginning of the week on the Warsaw Stock Exchange was associated with a clear sell-off of coal companies - the shares of JSW (over 7%) and Bogdanka (down over 3%) were losing heavily. Although there was no information that could fundamentally justify this sell-off, there were speculations that the market is playing for the possible emergence of negative information (new windfall tax?) in the coming days.

Macro data doesn't help

The negative sentiment towards the Warsaw Stock Exchange is also supported by the latest macroeconomic data. On a quarterly basis, Polish GDP fell by 2,4%, which is - so far - the worst result among European countries. A slowing economy means a decrease in demand, which in principle also reduces the level of supply among producers. Moreover, the persistently negative GDP dynamics may also lead to a decrease in labor demand and an increase in unemployment. Paradoxically, the weak GDP reading is quite positive news for investors, because in the reality of falling inflation, the MPC will not be willing to resume the cycle of interest rate hikes. However, reports about the upcoming offensive of Russian troops in eastern Ukraine are another negative factor for our region. Which companies can still gain from the ongoing conflict?

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński argues that the stock exchange does not love taxes.

In the latest webinar:

• Old love of windfall tax doesn't rust?
• How does Polish GDP compare to Europe and what does it mean? 
• Russia on the move - how will it affect our stock market? 

About the host

Maciej Kietlinski - professionally involved in the analysis of capital markets since 2017. He gained the necessary experience in such renowned companies as BGŻ BNP Paribas or Noble Securities. In his last place of work, he specialized in the analysis of listed companies from the dynamically developing gaming sector. He also gave stock exchange comments on TV Biznes24, Parkiet.tv or Inwestorzy.tv and for Forbes, Reuters, Parkiet, Gazeta Wyborcza and PAP Biznes. Kietliński also focuses on development, which is why he is currently working on a doctoral dissertation in economics at the Warsaw School of Economics. CIIA, Investment Advisor or Stock Broker.

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