Polish Stocks Advance as Government to Decide on PKO Stake Sale
Polish stocks gained for a third day as PKO Bank Polski SA climbed on speculation the government will suspend a stake sale and rising crude prices boosted refiners.
PKO, the largest Polish bank, headed for the largest gain in a week, while oil refiner PKN Orlen SA extended its biggest advance since April. The benchmark WIG20 Index rose 1.2 percent to 2,332.72 at 10:10 a.m. in Warsaw, trimming this month’s decline to 15 percent.
Poland, which planned to sell 15 percent of PKO as part of a plan to reduce government borrowing, is to decide today on whether to proceed with the deal after the stock slumped more than 20 percent since a 2011 high in April, Treasury Minister Aleksander Grad said on Aug. 19.
“Reducing the size of the transaction or suspending it are possible outcomes,” Marek Juras and Pawel Kozub, Warsaw-based analysts at UniCredit SpA wrote in a note today.
PKO increased for a third day, rising 1.5 percent to 36.21 zloty, valuing the lender at 45.3 billion zloty ($15.8 billion).
Kredyt Bank SA (KRB), which Belgium’s KBC Groep NV plans to sell, climbed 2.8 percent to 13.52 zloty, the biggest gain in more than a week. Bank Millennium SA (MIL), controlled by Banco Comercial Portugues SA, advanced 3.3 percent to 4.38 zloty, its second day of gains. OAO Sberbank, Russia’s biggest lender, is considering buying Millennium and Kredyt Bank, Kommersant said, citing several unidentified investment bankers.
PKN Orlen SA, Poland’s biggest oil company, gained 2.4 percent to 37.77 zloty, extending its 6 percent gain yesterday. Grupa Lotos SA (LTS), the second-largest refiner, climbed 2.3 percent to 34.28 zloty. Oil advanced as investors bet U.S. fuel demand may rebound and a recovery in Libyan crude output will take longer than expected.
KGHM Polska Miedz SA (KGH), the copper producer with the biggest European mine output, rose 1.1 percent to 159.5 zloty, extending yesterday’s 3.2 percent advance. Copper gained after data showed Chinese imports rebounded to the highest level since January and on speculation that the U.S. will announce additional measures to shore up the recovery.
Kernel Holding SA (KER) increased for a second day, adding 2.3 percent to 65.5 zloty. Citigroup Inc. recommended buying shares of Ukraine’s largest sunflower-oil producer in new coverage, setting its price estimate for the stock at 77 zloty.
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