Brake on the rise of its companies’ shares Polish has put the delay in peace in the Ukrainealong with the entry of the Russian drones into the Polish airspace.
Warsovia’s Wig20 stock market (Poland) rose up to 38% in the first 8 months of the year, as strong growth and domestic demand attracted foreign investors. However, The rise has stopped, as hopes for a significant development in the peace talks about Ukraine fade away after NATO’s reaction to the invasion of Russian drones into Polish airspace, comments on Bloomberg.
An additional negative factor in Polish stocks is the government’s plan to increase taxes in banks in an effort to limit the budget deficit that has been inflated due to the increase in defense spending. The market has fallen from the policy announcement in mid -August, declining more than 5% of the high recorded earlier in the same month.
The regional markets remain alert and Poland’s air defense systems are on high alert, as Russian President Vladimir Putin continues to launch attacks on Ukraine, and the US is considering new sanctions. Budapest’s BUX index has also dropped 5% of the historic high he had in August.
However, investors estimate that Polish stocks are likely to continue the upward trend that has led the WIG20 to double from 2022. The reference index is overwhelming over the pan -European Stoxx 600 in September, as the shares are rapidly recovering after the drones invaded. Poland’s Zloti remains relatively stable, ranging about 4.25 per euro in the last six months.
“Government decisions do not help, but the general picture has not changed dramatically, as Poland is still one of the fastest growing economies in Europe,” said Andras Szalkai, Raiffeisen’s portfolio manager Kapitalanlage GmbH in Vienna. “Many investors have lost the previous rise and may see the retreat as an opportunity to enter the Polish market.”