The beginning of a lasting bull market on the Warsaw Stock Exchange? [Closer to the Exchange]

The beginning of this year on the Warsaw Stock Exchange is one of the most optimistic in recent years. After the last quarter of the previous year, which was full of growth, the January rebound on the WIG20 is the most dynamic in 20 years. It seems, therefore, that the forecasts of some analysts about repeat from 2008 may have been exaggerated. Especially that compared to the popular stock market indices, the Polish index of the twenty largest companies is still relatively cheap.

Is the bull market on the Warsaw Stock Exchange coming?

Recession caused by the coronavirus pandemic has shaped a low for the value of the price/book value ratio of Polish companies, at a level close to 0,78. Currently, the P/BV for companies included in the WIG is 1,09, although in October 2021 it was around 1,41. On the other hand, the forecast value of the P/E ratio for MSCI Poland is growing. One of the reasons for this is the record-breaking warm winter in Europe - investors' concerns about the energy crisis, although they have not disappeared completely, have significantly decreased. However, in gas prices - especially American - February may mess up. The latest weather forecasts for the last week of January indicate that temperatures are expected to be noticeably below average across much of the United States. Will this affect companies listed on the Polish stock exchange?

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński answers the key question of whether we are witnessing the beginning of a permanent bull market on the Warsaw Stock Exchange.

In the latest webinar:

• Will it be different this time?
• Is it still cheap (compared to other indices)?
• What next for gas prices and inflation?

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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