Bogdanka successfully debuts on WSE

Coal miner Lubelski Wegiel Bogdanka has made a debut at the Warsaw Stock Exchange. It quickly became the leader of the session. The value of Bogdanka shares grew by 16.9% to PLN 56.1 at the opening on Thursday. Later the shares continued to climb closing at +19.8%. The turnover volume of Bogdanka shares was the highest at the WSE that day reaching PLN 380 million.

‘Bogdanka’s debut at the WSE was successful. The opening was good, it was followed by a consolidation and continued growth. This is a very good sign. I believe funds may attempt to accumulate rights to the company’s shares as they may be an interesting offer in their portfolio. I expect the value of Bogdanka’s shares will grow’ Tomasz Jachowicz, DnB Nord Polska analyst, told the Polish News Agency (PAP).

The IPO allowed investors to acquire 11 million from new issue of the C-series shares, representing 32.34% of the company’s initial capital. The company allocated 1.67 million shares to the individual investors sector and the mean reduction rate reached 88.75%. Institutional investors were allocated 9 million shares and employees – 0.33 million shares.

The profit is to be earmarked for modernising the old and building new mining infrastructure. The Stefanów mine is mainly considered for investments. Bogdanka intends to double coal output by 2014, wnp.pl reports.

Polish Market

ECONOMIC MONITOR

download pdf

• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
read more »

• In 2009 construction output increased by 3.7%.
read more »

• Retail sales increase in most product groups.
read more »

• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
read more »

• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
read more »

• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
read more »

• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
read more »

PODCAST

• Why do Israeli property developers pick Poland?

• New Polish president’s economic priorities

• Storm over homoerotic art show at Warsaw’s National Museum

• Poland’s new president Bronislaw Komorowski: a pragmatic, pro-business, euroenthusiast

• Poland and OECD innovation strategy

• How to make the Polish economy more innovative?

COMING UP

18th International Defence Industry Exhibition >>

WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

MARKET INFO