the main reasons for declines on the WSE in June

hello,

 

Today's entry, I decided to dedicate the home market which is the Warsaw Stock Exchange. And exactly what were the reasons recorded declines in June.

 

In the said month, the correlation between the U.S. and European Indexes was surprisingly small. On the chart below clearly shows that only SP500 and Nasadaq100, closed quotation above in comparison to the end of May.

 

 

chart 1. Behavior of Indexes in June, 2014-07-28

 

Factors can be multiplied. It is certainly among them tense geopolitical situation in relation to the conflict in Ukraine. It is Microcameras scandal, which wavered Rankings government and questioned the independence of the central bank.

 

But one of the main reasons for such a poor condition of the Polish stock exchange outflow of capital was in the possession, which are Open Pension Funds.

 

According to published information provided by pension funds show that during a June, sold shares of companies listed on the domestic regulated market and bonds convertible into shares of these companies, and listed on the market pre-emptive rights and rights to shares, on value of PLN 1.85 bilion.

 

This money is for the most part namely PLN 1.08 billion were invested in bank deposits in the Polish currency.

 

Another part of which is PLN 0.36 billion was invested in bonds and other debt securities issued by companies listed on the domestic regulated market

 

PLN 0.23 billion were invested in shares of companies listed on a foreign regulated market and bonds convertible into shares of these companies, and listed on the market pre-emptive rights and rights to shares. So speaking colloquially in shares traded on the foreign markets.

 

It should be noted that the total OPF have invested funds in the Polish stock market of 120 billion PLN and the outflow of capital in the last month accounted for less than 2 percent.

 

best regards,

oscarjp