The third quarter on the Warsaw Stock Exchange was characterized by increased volatility of indices and a clear disproportion of results in individual market segments. A high positive rate of return was realized by investors taking long positions on domestic blue chips, ie companies listed in the WIG20 index, while holders of stock exchange "average people" represented by the mWIG40 index still suffered losses.
On the whole of the third quarter, the mWIG40 index decreased its quotes by 1.2%. ending September at the level of 416.97 points. After three quarters of the downward trend on this index, its value decreased by 14.0 percent (from the top of January by 18.0%). The picture of the weakness of this part of the stock market is exacerbated by the different behavior of the WIG20 indexes and the broad WIG, which over the third quarter recovered a significant part of this year's losses. The WIG20 index has gained 7.0 percent since the end of June, ending September at the level of 2,295.11 points. In turn, WIG with a result of 5.4 percent. reached the ceiling of 58,974.76 points. Positive results of both indices were achieved due to the predominance of demand in July and August, and despite the contraction of the supply side observed in the first decade of September.
The financial results for the first half of the year, which were published in this quarter, were the support for quotations of the largest and most liquid companies. Most of the entities analyzed by us have managed to achieve a positive dynamics of profits due to growing sales, and in some cases also due to improved profitability. Banks and commodity companies such as KGHM, PGNiG and Lotos presented themselves well, occupying a prominent position in the WIG and WIG20 indices. One can not fail to mention the strong behavior of American stock exchanges, which despite the interest rate hikes by the Fed and the unrest related to the trade war with China, regularly improved historical bull market records in the summer months.