Warsaw Stock Exchange down – Orlen up

The U.S. and Israeli attack on Iran led to slight losses on the Warsaw Stock Exchange. The major indices fell by just over one percent on March 2. The oil company Orlen was an exception, as its share price rose significantly.

Shares of the state-controlled energy company rose by 5.09 percent to 120.5 złoty (28.4 euros). The benchmark WIG20 index, however, closed down 1.09 percent after losing more than two percent at times during the day.

Oil prices drive energy stocks

The jump in Orlen’s share price is linked to rising oil prices resulting from geopolitical tensions. In such situations, investors often anticipate higher margins for oil and gas companies.

The smaller Polish fuel trader Unimot also benefited from this development and posted gains.

The attack on Iran has increased risk aversion in the markets and simultaneously driven up energy prices, explained Marcin Kiepas, an analyst at the financial portal Stockwatch. Investors therefore expect higher profits in the energy sector.

Defense stocks on the rise

Companies linked to the defense industry also gained on the stock market. Shares of textile manufacturer Lubawa, which produces equipment for the Polish army, among other things, rose by 3.02 percent to 9.88 złoty (2.30 euros).

Container manufacturer Zremb-Chojnice gained 2.55 percent. Defense and ammunition producer Niewiadów, which is listed on the alternative market NewConnect, rose by 2.61 percent.

Tourism and aviation stocks under pressure

While energy and defense stocks benefited, companies in the travel industry reacted negatively to the geopolitical tensions.

Shares of tour operator Rainbow Tours fell 7.14 percent to 147 złoty (34.7 euros). Charter airline Enter Air also lost value, dropping 4.26 percent to 60.7 złoty (14.3 euros).

This article was produced in cooperation with our partner bne intelliNews