News Parkiet

Equity markets

Internet brokers still letting through

bad orders

Trading systems of at least two Polish brokerage houses contain loopholes that let through bad orders into Warset trading system. A survey by Gazeta Giełdy Parkiet has shown neither DM Millennium nor DI BRE has safety features preventing excessive losses through mistrades. Warsaw Stock Exchange authorities have already asked Polish brokers to activate special software application that helps eliminate bad orders.

Public finances

Poland?s budget deficit may rise

on EU accounting rules

Poland?s reported budget deficit could rise to as much as 7.2 percent of Gross Domestic Product after European Union accounting experts barred governments from recognizing payments into state-run pension plans as public revenue. The country has set its target for a deficit of 5.7 percent for 2004.Last year some ten million Poles paid about 10.3 billion zloty, or 1.3 percent of the GDP as contributions to private pension schemes last year.

Information Technology

Lesz steps down as Softbank CEO

Long-time head of Softbank S.A Aleksander Lesz stepped down as Chief Executive Officer of Poland?s third largest IT services company yesterday. He will be replaced by former head of Unisys Polska, Krzysztof Korba.

Lesz co-founded Softbank in 1989.

Food industry

Bunge to buy Kama Foods for PLN 81 mln

US oilseed processing company Bunge Ltd. together with Polish businessman Jerzy Starak have agreed to buy assets of oil and margarine producer Kama Foods for 81 million zloty ($21.3 million) from the company?s bankruptcy administrator on Tuesday. Bunge already owns majority stake in publicly traded Kruszwica margarine-maker.

Retailing

Redan sees 60 pct. earnings growth

Publicly traded clothing retailer Redan S.A. said the company expects 2004 earnings to grow by about 60 percent. The firm, which sells lower-end, youth-oriented clothing made in China expects profits of some 20 million zloty on sales of PLN 220 million. Revenue growth will be driven by national and regional expansion, Redan?s deputy CEO Piotr Kulawiński said during yesterday?s press conference. The company wants to open new outlets in Lithuania, Latvia, Ukraine, Slovakia and the Czech Republic. Redan was listed on Warsaw Stock Exchange late last year after a 54 million zloty IPO.

Information Technology

Betacom up 25 percent on IPO

Shares of Warsaw-based e-learning company Betacom S.A. rose 25 percent on their first day of trading on the WSE. Betacom, which distributes Saba Software e-learning solutions, sold 450.000 shares priced at 28 zloty each in an IPO in mid-February. The company raised an estimated 12 million zloty in an IPO that was twenty times oversubscribed by retail investors. Based on Tuesday?s closing price, Betacom now has market capitalization of some 67 million zloty. WSE said Betacom will be included in SiTech Information Technology index, which now contains 26 stocks.

FDI

Hyundai to build new car factory in Slovakia

South Korean Hyundai Motor Corporation said it has decided to build its first European car assembly plant in Slovakia to the dismay of Polish officials. Slovakia and Poland both offered tax breaks and other incentives to attract investment from Hyundai. The South Koreans said they would invest some 700 million euro in the new car factory.

Chemicals

Śnieżka beats forecast

Śnieżka paint-maker posted preliminary earnings of 19.4 million zloty despite fiscal fourth quarter operating loss of some 2.7 million zloty. The company exceeded initial earnings forecast of 19.2 million zloty. Sales were 1.1 percent higher, at PLN 317 million. Poland?s second largest paint factory attributed higher earnings to revenue generated by the rapidly growing Ukrainian subsidiary, as well as lower tax payments.

AutDom Maklerski BZ WBK brokerage has raised its target price for Inter Groclin car seat maker from 137 to 149 zloty. The broker expects Inter Groclin to sign four new contracts with European auto makers by the end of March. Each may be worth up to 100 million zloty ($27 million) per year, DM BZ WBK says in a research note issued on February 26.