News Parkiet

Equity markets

PKO BP sale won?t affect the market

Upcoming 6 billion zloty privatization sale of PKO BP is unlikely to cause a major sell-off on the Warsaw Stock Exchange. Statistically, WIG broad-market index fell by an average of just 2 percent before major privatization IPO?s in the past, only to rise by 1 percent one month after the sale.

Automotive industry

MG Rover, SAIC may bid for FSO car factory

MG Rover and Shanghai Automotive Industry Corporation could make their own bids for the assets of former Daewoo FSO car plant, sources close to the situation told PARKIET yesterday. Ukraine?s ZAZ car-maker already owns some of FSO?s unpaid debts and is also said to be negotiating the buyout of Warsaw-based plant.

Banking

Getin raises forecast

Shares of Getin Holding rose 5.9 percent to 2.52 zloty yesterday after the group raised its earnings forecast for Getin Bank, its key operating unit. Silesia-based bank, which specializes in car and mortgage loans, reported profits of more than 41 million zloty after nine months of this year, more than its initial projection of PLN 40 million. ROE totaled 25.9 percent, while cost efficiency, a key banking measure, fell to 54.6 percent. According to new earnings guidance, Getin Bank could earn as much as 51.2 million zloty.

Getin will complete its takeover of Bank Przemysłowy by the end of this month, chief executive Leszek Czarnecki said. The acquisition and new branch openings would more than double the number of Getin branches. It now has 49 outlets in south-central Poland.

Equity market

Market regulator OK?s Copernicus

private equity fund

The SEC has cleared plans for Copernicus TFI private equity fund. Poland?s first investment fund to focus on privately held equity investments plans to sell between 150.000 and 500.000 certificates to the public. Pricing details will be announced at a later date.

Pharmaceuticals

Prosper hits fourteen-month low

Shares of Prosper SA, the smallest of Poland?s four publicly traded drug distributors, fell 2.5 percent yesterday to close at 13.45 zloty, the lowest since August 2003. Warsaw-based company sees no reason for the drop other than general weakness of many mid-cap equities as investors trim their stock holdings ahead of this month?s privatization sale of PKO BP. However, Prosper auditor notes the group may have underestimated bad debt provisions in its six-month report published several days ago. Prosper reported earnings of PLN 5.7 million for the two quarters ending June 30. Hard-to-collect accounts totaled 5.2 million zloty, the auditor says. Prosper believes its receivables from drug stores and other clients will be recovered over time and says no additional provisions are necessary.