According to analysts of Noble Securities the year 2016 will be a period of turbulence on WSE. But they forecast that in all, the main indexes shall end up the year in plus.


It should be better
- It seems that attitude to big companies is very negative, which results in the situation that many risk factors are already included in price estimations and WIG 20 index may surprise us all in a positive way in 2016  – predict analysts in their strategy for this year.   They are a bit more careful when talking about perspectives of smaller companies segment.  – Small and medium companies dealt quite well in 2015 and it should be similar in 2016, but in their case, in case of no funds flowing to those companies, careful selection shall be crucial – said experts.


Among the main arguments for the Polish market they point at the economy. – Polish factors such as PMI or Economic Sentiment Indicator are at stable a level, which suggests that GDP growth rate in the nearest quarter shall be kept on current levels. Increase of investments financed from the second round of UE should give the market additional boost - say the analysts.  – We think that WIG, as well as WIG 20 will be higher at the end of 2016 than at the beginning – they forecast.


Front-runners for this year
According to analysts of Noble Securities there are many interesting occasions on the market, which in 2016 may surprise us in a positive way. Favourite of the broker is PEKAO bank.  Next, in the energy sector, the most attractive after the last correction down are Enea and PGE. Among construction companies, they can see profits in shares of Erbud, Torpol and Trakcja.  From the industrial branch of business the experts preffer:  Amika, Alumetal, Izo-Blok, Rawplug and Sanok. Among real estate companies the best choice will be Dom Development.  Out of other companies they positively assess:  11-Bit Studios, Emperia, MCI Capital and Medicalgorithmics. On the other hand the second half of the year should be positive for Comarch and Inter Cars.


Among the main risks which might shake the market in 2016, the analysts cited structural problems in China and risk of steep devaluation of yuan, or deeper price fall of shares on developed markets after several years of growths. Whilst the biggest threat for WSE will be the need of paying extra by banks for endangered SKOKs or cooperative banks, increase of financing cost for Polish corporations after implementing bank tax and passing the bill about foreign exchange credits.
 

Source: Parkiet

2016-01-26

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