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Equity markets

PKO BP to start trading today

Retail investors are debating their options before today?s market debut of PKO BP, Poland?s no. 1 bank by assets. A survey by PARKIET shows that most expect PKO BP to start trading at 23 zloty or more, up at least 16 percent from the IPO price of 19.7 zloty (including 4 percent discount). However, some Polish investors bought shares on margin and may feel the pressure to sell in order to repay their loans.

As far as institutional buyers, most OFE pension funds are already fully invested in PKO BP. Sources close to the situation say some local mutual funds are underweight and may add to their position when the trading begins at 9 AM today.

Historically, most Polish stocks that have done well immediately after their IPOs performed poorly later on as investors took their profits.

Banking

Bank Zachodni WBK may boost 2004 ROE to 17 pct.

Polish unit of Allied Irish, Bank Zachodni WBK, reported a 156 percent increase in third quarter earnings to 96.1 million zloty, or 1.32 zloty per share yesterday thanks to cost cuts and lower provisions for bad loans. BZ WBK chief executive Jacek Kseń said the bank, which is 70.5 percent controlled by Allied Irish Banks Plc,

Full year earnings are likely to exceed previous estimates of PLN 375 million, raising BZ WBK?s Return On Equity, a key performance ratio, to more than 17 percent, Kseń said.

Shares of BZ WBK, a WIG20 component, rose 3.7 percent to close at 87.9 zloty yesterday.

Telecommunications

Netia posts stronger third-quarter profit

Netia SA, Poland?s second largest fixed-line phone company reported third-quarter earnings of PLN 44.7 million ($13.5 million) compared with a loss of 824 million zloty because of massive write-offs last year. Sales were up 30 percent to PLN 231.7 million after Netia bought El-Net, a regional phone company that used to be part of Elektrim conglomerate.

?Acquisitions accounted for 18 percent of Netia?s improving sales, while internal growth generated 11 percent increase?, chief executive Wojciech Mądalski said.

Netia had over 426.000 subscribers at the end of September, a third of them business customers.

Separately Netia said it would issue up to 18.4 million new shares to pay off creditors.

Publishing

PPWK, Nowa Era fined by anti-trust

authorities

UOKiK anti-trust authority fined publicly traded map publisher PPWK and privately held textbook publisher Nowa Era for illegal arrangements to divide up their market.

Warsaw-based PPWK has agreed not to compete with Nowa Era when it sold its educational book publishing business in July of last year. Polish regulator now says the two must pay fines of 85.000 and 15.000 zloty respectively for signing a deal.