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. Last Updated: 07/27/2016

Poland's Stock Exchange Boom Likely to Slow

WARSAW -- Last year's dizzying climb on the young Polish stock exchange is unlikely to be repeated but the buoyant mood should help the bourse grow and mature this year, traders and share analysts have said.


The share index rose in 1993 to 12,439 from 1,037, prices in dollar terms rose by some 680 percent and daily turnover boomed to 2.1 trillion zlotys ($100 million) from some 40 billion just a year ago.


The Warsaw Stock Exchange reopened after 50 years in April 1991 with only five stocks listed and trading sessions held once a week. Another trading day was added in 1992 and now trades three times a week.


Traders said the 1993 boom was largely due to a shortage of new issues and an expected increase in supply in the first quarter was likely to cool the speculative frenzy.


Last year only six new stocks were added, taking the total to 22, while the number of investors tripled to about 250,000 at the end of the year.


But new issues should be made available faster this year if the government honors pledges to make public offerings a priority of its privatization program.


About four new stocks and eight rights issues are expected in the first three months of 1994. Bourse president Wieslaw Rozlucki said he expected 40 stocks to be listed by the end of 1994 and that half the already quoted companies were likely to issue new shares.


Brokers say the listing of Bank Slaski SA, expected this month after being privatized last month, will test the market.


More than 800,000 people placed bids worth 8 trillion zlotys when the government offered 30 percent of the shares for 1.4 trillion zlotys last year. The issue's market price is expected to reach half of the whole market's capitalization of $2.75 billion which brokers say could cause a cash transfer from other stocks, possibly triggering a plunge.