News Parkiet

Equity markets

Costly futures order causes massive losses

Popular FW20H index futures contracts plunged over 100 points to 1526 in late trading on Wednesday after an incorrect order triggered several large stop-loss orders. Futures contracts then bounced back over 200 points to a high of 1788 before falling back to just over 1630 points.

Stock market authorities said they won?t cancel futures orders filled during Wednesday?s price swings. The mistake has cost futures traders several million zloty.

Banking

BCP looking for new partner in Poland

Banco Comercial Portugues has officially denied rumors it will reduce its stake in Millennium Bank. Portuguese media reported yesterday BCP is looking for a partner to sell part of its 50 percent stake in Millennium because of disappointing results at the Polish bank. Equity analysts nevertheless expect BCP will go ahead with its plans.

Public finances

Hausner won?t give up cuts in public

spending

Economy Minister Jerzy Hausner says it?s too late to even consider changing his plans to reform Poland?s public finances. Hausner, who proposed an ambitious cost-cutting plan, including the elimination of early retirement benefits and some disability payments criticized plans to raise taxes on banks and other financial institutions. SLD ally, OPZZ trade union and right-wing League of Polish Families said recently they want to levy a special, 50 percent tax on all bank profits.

Commenting on currency market situation Hausner said ?the best? exchange rate for the Polish economy would be at 4.5 to 4.6 zloty per euro. Government budget for this year is based on 4.60 zloty to euro exchange rate.

Equity markets

Analysts expect disappointing 4Q earnings

Polish equity analysts say upcoming fourth quarter earnings announcements are unlikely to meet investor expectations despite signs of economic recovery.

?Investor expectations are already so high we probably won?t see any positive surprises?, says Sebastian Słomka from BDM PKO BP brokerage.

Equity analysts polled by PARKIET say Orbis hotel chain, KGHM copper mining group and PKN Orlen oil refinery could show the best 4Q reports among Polish blue chips.

Engineering

Elektrobudowa slides after missing earnings target

Shares of Elektrobudowa power industry supplier fell 2.1 percent to close at 23.5 zloty yesterday after the company announced lower than expected earnings. Elektrobudowa, which makes switchgears and provides services to power industry companies said its 4Q earnings totaled just under 3 million zloty.

Earnings would be much higher if it wasn?t for 4.3 million zloty provision for future employee bonus payments, Elektrobudowa said in a statement accompanying its quarterly report.

Twelve-month earnings rose to PLN 3.1 million. Katowice-based firm said earlier it expects to earn 3.3 million zloty, or 0.83 zloty per share.

The firm has already announced it expects 70 percent earnings growth this year after booking several contracts with key power industry customers.

Insurance

FinLife in talks to buy Polish competitors

Suomi Mutual subsidiary FinLife is looking for possible acquisition targets in Poland, CEO Bogusław Sosnowski told PARKIET yesterday. Sources say Finnish company is negotiating the purchase of Royal PBK life insurer in order to become one of Poland?s top ten life insurance firms.

Insurance premiums at FinLife rose to 28 million zloty in 2003. The firm wants to more than double its premiums to PLN 70 million this year.

Airline industry

LOT boosts sales

Poland?s national airline PLL Lot said the number of passengers last year rose by 310.000 to over 3.7 million despite the Gulf war, continuing fears of terrorism and SARS. International routes accounted for over two-thirds of LOT sales in 2003.

Mining

PKGHM?s vice CEO said recently mining conglomerate may be privatized much sooner, prompting 4 percent plunge of its stock price.