Telekomunikacja Polska SA jumped the most in more than a month after ING Groep NV upgraded Poland’s largest phone company following the stock’s 39 percent slump last week.
The shares rose 2.8 percent to 7.30 zloty in Warsaw, the second day of advances and the steepest gain since Jan. 7. The Polish unit of France Telecom SA had the second-biggest jump among 20 stocks in Warsaw’s WIG20 Index, which rose 0.3 percent.
Telekomunikacja had its recommendation raised to hold from sell at ING, which said it saw “no more downside from the current levels.” The stock is rising from a record low reached on Feb. 14 after the company cut its dividend proposal for the second time in four months after fourth-quarter profit and revenue slumped.
TPSA’s 14-day relative strength index fell to 7.2 at the close on Feb 14. A reading below 30 indicates to some technical analysts a security may gain. The RSI was at 12.8 today.
Telekomunikacja’s revenue has fallen since 2007 as competition increased and the country’s phone regulator forced operators to cut prices. The watchdog is lowering the rates that mobile-phone operators charge each other for calls to their networks, while competition from wireless providers is eroding fixed-line revenue.
In the mobile telephony market, TPSA competes against the local unit of Deutsche Telekom AG’s, Polkomtel Sp z o.o. and P4 Sp. z o.o., which is owned by Thor Bjorgolfsson’s Novator and Tollerton fund.
“We are of the opinion that TPSA is the most resilient of the four local operators due to the fact that over 60 percent of the company’s earnings before interest, taxes, depreciation and amortization is still coming from the fixed-line segment,” Andrzej Kubacki, an analyst at ING in Warsaw, said in the report dated Feb. 15.