News Parkiet

Equity market

Block trading may disappear from WSE

After-hours block trading, a practice used by investors to buy and sell large blocks of shares, may soon disappear from the WSE after new securities laws takes effect. The bourse now received about 2 million zloty in commissions from block trades. New laws also allow Polish stock brokers to set up Alternative Trading Systems. However, most brokers say setting up alternative exchanges may be too expensive.

Corporate earnings

Analysts optimistic about 2Q earnings

Polish equity analysts say second-quarter corporate earnings will be better than last year's despite the economic slowdown in the first half of 2005. The big winners, analysts say, include media companies, as well as oil stock benefiting from sky-high oil prices and KGHM copper mine.

New media

Interia up 16.4 pct. on earnings

Shares of Interia.pl, Poland's third most popular Internet directory surged as much as 16.4 percent to close at 12.4 zloty, the highest since February after the company reported a surprise 1.08 million zloty profit. Kraków-based Interia lost 0.83 million zloty in the second quarter of last year.

Revenues in the June quarter rose34 percent to PLN 10.2 million.

Furniture

Swarzędz shareholders say 'yes' to equity increase

Shareholders of the nearly bankrupt furniture manufacturer Swarzędz SA have approved another offering of some 53 million shares, raising cash to help pay back some of its debts. It now has 13.3 million shares outstanding.

In addition to new offering, Swarzędz, whose shares are still trading on the Warsaw bourse plans yet another equity increase as part of a debt for stock swap with creditors.

Privatization funds

NFI Piast cuts management expenses

Privatization fund NFI Piast has decided to internalize its asset management, terminating a contract with KP Konsorcjum, an alternative asset management firm. One of the fourteen NFI privatization funds listed on the Warsaw bourse, Piast used to pay as much as 0.8 million zloty every three months to manage assets that totaled less than 30 million zloty at the end of March. The move comes as Piast's new shareholder, BB Investment private equity fund demanded a shake-up at the company, including a new board.

Metals

Ferrum rallies to 9.5 zloty

Shares of metal pipe manufacturer Ferrum are back above company's 9.5 zloty offering price ahead of this week's second-quarter earnings report. The company has recently won a new contract in Lithuania. Chief executive Jan Waszczak says Ferrum will restart sales to the US, where it used to sell several thousand tons of steel pipes a year.

Silesia-based Ferrum sold shares in a secondary offering in April to raise cash for working capital and investments.