Shares of PZU jumped to the highest level in 14 months after the government said it would probably reduce its stake in Poland’s biggest insurer next year not now.
Stock gained 2 percent to 378.2 zloty at 2 p.m. in Warsaw, the highest since August 2011, while WIG20 main index fell 0.4 percent, according to data compiled by Bloomberg.
The reduction of the state-owned stake in PZU is “more a matter for next year,” Treasury Minister Mikolaj Budzanowski was cited as saying by Rzeczpospolita daily. Poland holds 35.2 percent of the insurer’s shares and the company’s by-laws allow government to reduce its holdings to 25 percent plus one share and still control the insurer.
“Investors may be positively surprised,” Pawel Kozub, Warsaw-based analyst at UniCredit brokerage said by phone. “Previous statements from the ministry suggested that the sale may be triggered any day. We expect that the government will wait for the dividend before starting this transaction.”