News Parkiet

Equity markets

WSE earnings up seven-fold after miserable 2002

Warsaw Stock Exchange reported annual earnings of 15.2 million ($3.9 million) versus just over 2 million zloty in all of 2002. Reactivated in 1991, WSE said its sales were up 21 percent to PLN 88 million. State-owned bourse attributed stronger earnings to cost-cutting measures, including 10 percent staff reduction, as well as stock market rally in the second half of last year.

Equity markets

DA lets go account held in stock manipulation scheme

Warsaw district attorney has reportedly failed to extend an injunction freezing brokerage account of a company involved in one of Poland's biggest stock market scams. The account, kept in the name of Cagliari, an investment company at DI BRE brokerage house held an estimated 6.5 million zloty, including 2.8 million zloty gained as a result of illegal scheme to manipulate the price of WIG20 index futures contracts in early February.

BDM PKO BP brokerage, which lost an estimated 3.8 million zloty ($1 million) now admits it has little chance of ever recovering the money, despite criminal charges filed against two individuals involved in the scheme.

Banking

No changes seen at GBG after new owner takes control

GBG bank from southern Polish Silesia province is unlikely to undergo any major changes after the acquisition by Getin Holding financial group, market watchers say. However, at least one banking analyst, DI BRE Banku's Andrzej Powierża says he expects a temporary drop of GBG's earnings as it cleans up its loan portfolio. GBG posted net earnings of 15.3 million zloty in the first quarter alone, up 25 percent from the same period last year.

Just days ago Getin paid BPH Bank some 255 million zloty ($65.4 million) for the 71.2 percent stake in GBG. Polish businessman Leszek Czarnecki who owns Getin took over as GBG's chief executive officer. Mr. Czarnecki, best known as the founder of highly successful Europejski Fundusz Leasingowy bought GBG together with JNR Acquisitions, a private equity fund run by Nathaniel Rothschild.

GBG has own equity of approximately 202 million zloty. With over 410.000 retail and SME business accounts, GBG has approximately 10 percent share of the local market in its home region of Upper Silesia.

Equity markets

IPO market still hot

Polish stockbrokers are expecting at least a dozen new Initial Public Offerings later this year compared with just five IPOs in all of 2003. CDM Pekao, which handled the IPO of real estate developer Globe Trade Centre together with ING Bank, says it is working on two or three 100-million zloty IPOs in the second half of 2004. Other active players on the IPO markets, including PKO bank's BDM PKO brokerage, ING Securities, Bank Austria's CA IB Financial Advisors, Dom Maklerski Millennium and the privately held IDM SA say they are planning between 2 and 5 IPOs each.

Food industry

Kruszwica to start production of fuel additives

Bunge group-controlled margarine maker Kruszwica SA may start production of vegetable oil-based gasoline additives, company spokesman told PARKIET on Friday. Kruszwica's shareholders will vote on proposed business expansion on June 21st.

Equity markets

JC Auto up 5.2 pct. on IPO

Shares of Japanese auto parts distributor JC Auto rose 5.2 percent on Friday on the Warsaw Stock Exchange after a 67-million zloty IPO that closed last week. JC Auto sold 2.5 million new shares priced at 27 zloty each in an offering that was three times oversubscribed by retail investors.. The stock closed at 28.4 zloty on Friday. More than 94.000 shares changed hands on the first day of trading.

JC Auto's founder and CEO Jerzy Grabowiecki, who retains 67 percent interest in the company said he has no intention of selling the stock "in the foreseeable future'. Mr. Grabowiecki formally pledged no to sell any stock for at leJC Auto said it wants to use IPO proceeds to expand its chain of Perfect Service automotive repair shops, increase working capital and open up subsidiaries abroad. Export sales already account for 40 percent of JC Auto's revenue, the company said in its IPO filings.

JC Auto is expecting net earnings of at least 13.8 million zloty ($3.5 million) on sales of PLN 140 million this year.

JC Auto is this week's third IPO, after local competitor Inter Cars and Elstar Oils vegetable oil maker.