News Parkiet

Equity markets

Polish blue-chips' earnings double

Total earnings of blue-chip stocks listed on the Warsaw bourse more than doubled last year, despite generally weak performance of Polish banking sector. Sales of WIG20 companies were up 7 percent compared with 2002. Banks, which account for a large chunk of WSE's market capitalization saw their interest income decline by a quarter because of lower interest rates.

Three WIG20 components - PKN refinery, Prokom Software and Dębica tire-maker increased their sales by 25 percent or more.

Politics

Civic Platform says no to gov't savings plan

Poland's biggest opposition party, center-right Civic Platform (PO) said the minority government's four-year spending cuts plan is unacceptable because the cuts don't go far enough.

PO leaders said during yesterday's press conference SLD savings program, dubbed 'Hausner plan' after SLD's Economy Minister Jerzy Hausner threatens to push Poland's public debt above 60 percent of the country's GDP, triggering automatic, much deeper spending cuts and pushing back adoption of the euro. PO also said the plan raises taxes by as much as 21 billion zloty over the next three years. Meanwhile, government spending on public administration is reduced by just 1.3 billion zloty instead of PLN 20 billion ($5.1 billion) Hausner initially claimed, PO leaders said on Monday.

However, the party said it would support new pension indexation plan, the restructuring of KRUS farmers' pension system and other reforms. Despite PO's opposition, ruling Social Democratic Left Alliance is expected to gather enough votes from smaller opposition parties and independent deputies to push Hausner plan through the parliament.

Banking

Kredyt Bank posts 1.6 billion zloty loss

KBC subsidiary Kredyt Bank S.A. has announced a 1.6 billion zloty ($420 million) loss after it was forced to write off part of its loan portfolio. KBC's Polish unit lost PLN 1.27 billion in the fourth quarter alone after massive charges on loans to shipbuilding, automotive and real estate clients.

The bank, led by Małgorzata Kroker-Jachiewicz, a new CEO appointed by the KBC says it will return to profits this year.

Information Technology

Elzab cuts losses on Domator-Omega

Poland's only publicly traded maker of cash-registers, Elzab S.A. got rid of unwanted, money-losing subsidiary it took over by accident in late 2002. Elzab has made a deal with Omega's former owner Holding Domator, which bought back Domator Omega rope and scaffolding maker for PLN 4.6 million. Elzab received Domator Omega in return for unpaid debts owed by its parent company.

Information Technology

Optimus sees profits in 2004

Optimus computer-maker expects 'double-digit' sales growth and a return of net profits this year, vice CEO Małgorzata Walczak said yesterday. Publicly traded firm will try to reclaim market share after losing its no. 1 position about two years ago. Nowy Sącz-based company sold 54.000 PCs and 1300 servers last year.

Information Technology

Prokom, CSC sign megadeal with Grupa PZU

Poland's no. 1 IT firm Prokom Software and US Computer Sciences Corporation have signed a framework agreement with the country's largest insurer, Grupa PZU. Exact terms of the contract will only be known after the completion of various IT projects at PZU.

However, industry sources estimate total cost of three-year contract at between 500 and 800 million zloty ($128-205 million).

Shares of Prokom Software rose 8 percent to close at 215 zloty, the highest in more than four years before final announcement of PZU contract.

Telecoms

Kompania Węglowa postpones TP sale

State-owned Kompania Węglowa coal mine restructuring agency said it won't sell its 2 percent stake in Telekomunikacja Polska until the phone company pays dividends from last year's earnings. KompanTelekomunikacja Polska has already announced it would pay out up to 0.1 zloty per share in dividends.