Warsaw Stock Exchange weaker - Orlen up

The attack by the US and Israel on Iran caused slight losses on the Warsaw Stock Exchange. The most important indices fell by just over one percent on March 2. One exception was the oil company Orlen, whose share price rose significantly.

The share price of the state-controlled energy company rose by 5.09 percent to 120.5 złoty (28.4 euros). In contrast, the leading index WIG20 closed with a loss of 1.09 percent, after having lost more than two percent at times during the day.

Oil prices drive energy stocks

The jump in Orlen's share price is related to rising oil prices as a result of geopolitical tensions. In such situations, investors often expect higher margins for oil and gas companies.

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

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

Defense stocks on the rise

Companies related to the defense industry also gained on the stock market. Shares in 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. Arms 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 geopolitical tensions.

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

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