Warsaw Stock Exchange defies global weakness

On February 23, the Warsaw Stock Exchange clearly diverged from the international trend. While many Western markets were under pressure, the most important Polish indices rose sharply. This was triggered by both the absence of military escalation in the Middle East for the time being and surprisingly strong retail data from Poland.

Fears of a possible US military strike against Iran, which some market participants had expected over the weekend, did not materialize. This easing of tensions was enough to increase investors' risk appetite in Warsaw. The leading index, WIG20, closed up 1.67 percent, while the broader WIG gained 1.33 percent.

In contrast, many major European stock markets remained under pressure. In the US, uncertainties surrounding trade policy and new tariff announcements further weighed on sentiment.

Strong consumption as a price driver

The market received additional tailwind from robust economic data. The GUS statistics office reported a 4.4 percent year-on-year increase in retail sales for January, significantly more than the expected 3.1 percent.

Clothing and footwear performed particularly well. Furniture, electronics, and household goods retailers also benefited from double-digit growth rates. Analysts therefore expect positive momentum for the corresponding listed companies.

The combination of easing geopolitical tensions and a solid domestic economy made Warsaw a positive outlier in an otherwise subdued market environment.

This article was produced in cooperation with our partner bne intelliNews.