Ciech SA (CIE), a Polish chemicals maker, declined the most in more than three months as a technical indicator suggested the stock’s rally was overdone.
The shares tumbled as much as 8.6 percent to 19.6 zloty, the steepest intraday decline since March 20, and traded 3 percent lower at 20.8 zloty as of 9:43 a.m. in Warsaw. Ciech’s 14-day relative strength index stood at 83 at the close yesterday. A reading above 70 indicates to some technical analysts a security may fall. The RSI was at 71 today.
Ciech, controlled by the government, has risen 19 percent this year, compared with a 5.3 percent gain in the WIG20 Index. Poland’s Treasury Ministry said this month it’s seeing investor interest in the country’s chemicals producers.
To contact the reporter on this story: Piotr Bujnicki in Warsaw firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com