Impulse to break out on WIG [Closer to the Stock Exchange]

Tuesday's session on the Warsaw Stock Exchange ended with an over one percent drop in the index of the twenty largest companies. WIG20, like most major stock indices, plunged in reaction to Jerome Powell's words before the Senate Banking Committee, who suggested further interest rate hikes Fed. However, despite yesterday's declines, the general trend on the Warsaw Stock Exchange - at least in the medium term - remains upward.

Will China help the Polish stock market?

The impulse for further increases in the WIG may be the Chinese credit impulse, which in the past has preceded the trend changes on the WSE many times. However, the last few months have been associated with a noticeable decrease in this indicator, which may suggest that a correction appeared on the WIG chart around the middle of this year. Will China's credit impulse prove to be a leading indicator this time around? It is worth remembering that although China makes up the bulk of the basket MSCI Emerging Markets, which also includes the Polish trading floor, regional factors such as the war in Ukraine may play a greater role in the valuation of Polish companies. This can be confirmed by the relative strength of WIG20 or sWIG80 against S & P 500, which suggests that companies with a smaller capitalization are doing better in a dynamically changing environment.

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński looks at the impulse to break out on the WIG.

In the latest webinar:

• Opportunity for WIG to increase in the first half of 2023
• How does the Chinese credit impulse correlate with the ISM? 
• Relative strength of the WIG20 against the S&P 500   

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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