Warsaw Stock Exchange Defies Global Weakness

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

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

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

Strong Consumer Spending Drives Market Gains

The market received additional momentum from robust economic data. The Central Statistical Office (GUS) reported a 4.4 percent year-over-year increase in retail sales for January—significantly higher than the expected 3.1 percent.

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

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

This article was produced in cooperation with our partner bne intelliNews