News Parkiet

Investment funds

Fund officials quitting corporate

boards over disclosure rules

At least Polish mutual and investment funds have decided to recall their representatives from the corporate board of directors after new, tighter disclosure rules. Under article 161f of the Polish Securities Laws, since May 1st institutional and retail investors must tell the Securities and Exchanges Commission about all trades involving shares of companies where they have board representation.

Most mutual and pension fund managers say the rule is too broad and in effect forces them to pick between confidentiality and corporate oversight of their holdings.

Stock markets

Wall Street on terror alert

Stock market and the US dollars lost ground on Monday after an intelligence warning of possible terror attacks by Moslem extremists with ties to Al-Quaeda. Department of Homeland Security said the US has intelligence pointing out to potential bomb plots against US and international financial institutions in New York, New Jersey and Washington.

Meanwhile, oil prices on the global markets hit a new record at 43.92 dollars per barrel in early morning trading on the New York Mercantile Exchange.

Transportation

PEKAES shares on sale by

bankruptcy administrator

Court-appointed official managing assets of Servipol logistics group has put on sale almost 400.000 shares of PEKAES SA, Poland?s largest trucking company. The stake represents about 1.9 percent of all outstanding shares of Pekaes, which owned Servipol before it went under. The bidding starts at 7.92 zloty per share, a huge discount from PEKAES? book value of 11.86 zloty per share.

State-owned PEKAES is technically a public company, but its shares are not listed on any organized exchange. Polish authorities are working on IPO plans for the 500-million zloty firm. The offering is scheduled later this year.

Energy

Remak makes extra gains in Estonia

Remak power plant contractor could report its highest ever six-month earnings thanks to a 1.2-million euro bonus for the completion of upgrades at Estonia?s Estii power plant. Net profits could go as high as 2.5 million zloty, or 0.83 zloty per share, sources told PARKIET yesterday. That compares with last year?s earnings of PLN 1.5 million.

Brokerage industry

ING Securities back as one of

Poland?s top brokers

ING Securities has regained its position as one of Poland?s top three brokerage houses after slipping to the sixth spot in June. ING?s Polish stockbroker tied for the third place with CA IB Securities. Each had more than 11 percent market share in July. CDM Pekao came in second with 14.7 percent.

Citibank?s DM Banku Handlowego remained Poland?s no. 1 broker by trading volume, with over 16 percent of the local market.

Trading volume in stocks in July totaled 6.1 billion zloty ($1.67 billion).

Banking

BRE?s profits rise 45 percent

BRE Bank, Poland?s fifth largest bank by assets said, said yesterday its second-quarter earnings rose 45 percent to PLN 30.3 million because of higher revenue from commissions and stronger interest income. Commerzbank unit has increased provisions on bad loans by 58 million zloty compared with PLN 31.1 million last year, deputy chief executive Krzysztof Kokot said at a news conference.

BRE?s retail and private banking unit, which includes mBank, Poland?s top Internet bank, lost a total of 37.6 million zloty in the six months to July. The unit will turn profitable next year, BRE said. The bank estimates retail operations will generate a third of its revenue by 2006.

Shares of BRE Bank, part of WIG20 blue chip index, were unchanged at 100.5 zloty after yesterday?s earnings report.

Telecommunications

Centertel?s 2Q earnings higher

Telekomunikacja Polska?s mobile unit Centertel reported higher than expected seThe firm, which operates under ?Idea? brand name, said it has signed up almost 400.000 new subscribers in the first six months of this year. It had 6.1 million customers at the end of June.

Centertel?s chief executive Sławomir Skrodzki used yesterday?s earnings conference to once again criticize government plans to issue a fourth mobile license. Skrodzki expects much slower revenue growth if that were to happen, because the new market player would have to steal customers from the existing three mobile phone companies.