WIG20 Slips 0.4% After Hot U.S. Inflation

For Polish assets, the macro backdrop got no easier. Local inflation was also revised higher, and some members of the National Bank of Poland’s rate-setting council are leaning toward tighter policy, adding to pressure on equity valuations in Warsaw. Higher rates typically weigh on stocks by lifting discount rates and raising borrowing costs.

The WIG20 is still up more than 32% this year and has risen for three straight months, leaving it near the September bull-market peak despite Thursday’s setback. Banks were among the weaker blue chips, with Pekao down 1.3% and PKO BP off 1.2%, while KGHM fell almost 4% as silver prices slid 4.6% and copper supply forecasts improved.

The sharpest single-stock move came in mid-caps, where Auto Partner tumbled nearly 11% after its main shareholder sold a 3.06% stake at more than a 15% discount to Tuesday’s close. The sale raised immediate dilution-overhang concerns for investors and dragged the name to the bottom of the mWIG40.

Not all domestic stocks lost ground. Allegro hit a more than five-year high, PGE traded at its strongest level since 2015, and Vigo Photonics rose 4% after reporting third-quarter revenue growth of almost 50%.

The next market catalyst is the Fed’s policy path and fresh inflation data, while in Poland investors will watch for further signals from the NBP after the latest price readings.