Recent sessions have been exceptionally successful for the Warsaw Stock Exchange (WSE), with the Polish stock market being one of the strongest in the world. On Monday morning, the WIG – the WSE’s main index – set its new historic peak.

On Monday, the WIG index reached 75,236.8 points, a new all-time high, after rising by 1.55 %. The attack on the all-time record had been underway for several days. Moments after 11.30 a.m., the scope of the strengthening diminished and the WIG quotation moved to the area of 74,850 points.

The bull market on the WSE has been going on for several months. It all started when the Polish market began a strenuous rebound in mid-October. The WIG has gained as much as 67 % since the bottom, set at 45 018 points, and the main index is 30.8 % in the red since the beginning of this year alone. In comparison, the German DAX has gained only 14 % in this period and the US S&P 500 less than 18 %.

The WIG20, an index gathering the 20 largest and most liquid companies on the WSE, is also doing well. It has reached its highest level since January 2022, the period immediately preceding the plunge triggered by Russia’s attack on Ukraine.

According to Daniel Kostecki, analyst at CMC Markets, the Polish stock market is in the midst of a very fortunate confluence of global and local events.

“The WSE does not live in isolation from other markets but is connected to them. Here, in particular, we have seen a rally in stock indices around the world, which may be linked to a loosening of financial conditions through falling yields, a play on US interest rate cuts, temporarily lower inflation or covering short positions. In Poland, on the other hand, where the WSE first recovered from the September shock, the inflow of foreign and domestic capital seems to be progressing”, the analyst wrote in a commentary.

The increase of the Warsaw indexes’ quotations is accompanied by the strengthening of PLN, which is also an expression of the large inflow of foreign capital to Poland.

Arkadiusz Słomczyński