31 October 2017

Parkiet: “Global bull market overlooks small companies”

“Valuations in the global fusion market have never been this high, and the upswing is not over yet. In contrast, valuations on the Warsaw Stock Exchange are still relatively low – especially those of small and medium-sized enterprises,” reports Tuesday’s Parkiet. The article quotes ARIA Fund’s Financial Analyst, Seweryn Żołyniak.

Parkiet points out that majority of this year’s 31 calls involved small and medium-sized companies. The trend will also continue in the forthcoming months. Seweryn Żołyniak, ARIA’s Financial Analyst, says that despite months of positive economic climate, valuations of companies on the Polish market have not yet reached records broken in 2007, both in terms of value and fundamental indicators. “When analyzing indicators for the Polish market, it can be assumed that it is undervalued compared to mature global markets. It’s particularly evident in the segment of small and medium-sized companies, whose WiG80 indice has sustained downward trend for over six months now,” explains Żołyniak. The expert also draws our attention to the large difference between this year’s number of delisted companies (17) and market debuts (9). Will the valuations improve? “ There are significant indications that further increases both in Polish and global markets are at risk. If the US market experiences decline we cannot hope for a bull market on the Polish stock exchange,” warns Żołyniak. Full article (in Polish) available here: Parkiet