For the first three days of last week we had quite a boring trade on the Warsaw Stock Exchange. Despite the weekend agreement between EU and Greece investors were waiting for Greek parliament’s approval for the reforms. When the reforms were approved, on Thursday, trading revived slightly and most of shares went up. 

If you look at the charts of most major indices of European stock exchanges, including the Warsaw Stock Exchange, you will see that in the last week they all looked almost the same. The charts resemble a bit the shape of a parabola. It is all due to European investors’ mood changes.

It was another week full of uncertainty awaiting for a solution to the Greek case. The market was being flooded with positive and negative information on progress in the negotiations between the Greek government and the Troika. On Monday all stock exchanges opened sharply lower after the breakdown of the weekend talks. As a result major indices in Europe, in the US and in Poland ended previous week in the red. Germany’s DAX lost 3.8%, so a little more than it had gained a week earlier.

Last week market sentiment was determined by the information from the negotiations between the Greek government and its creditors. Monday brought a bit of optimistic news. Belief in achieving consensus reached most of the indices a few percent above closing line. During the rest of the week, investors were trying to maintain gained profits and waiting for a solution to the Greek case. Depending on the tone of the incoming information the main European stock indices were moving up and down.

Another disappointing week on the Warsaw Stock Exchange was crowned with strong declines on the triple witching day, which is the day when contracts expire, June contracts this time. During whole week the WIG index lost 1.7% mainly due to Friday session. Indices of small and medium-sized companies were dropping by about 2%.