Polish Stocks Retreat to Six-Year Low on Co-op Bank Failure
- Bank shares drop as fees to state-guarantee fund may grow
- Utilities fall on report they may be forced to rescue mines
This article is for subscribers only.
Polish stocks, the worst performers in emerging markets on Monday, sunk to a six-year low following the bankruptcy of one of the country’s biggest cooperative banks and amid concern the new government will force utilities to rescue unprofitable coal mines.
The WIG20 gauge of the largest and most-liquid companies traded in Warsaw declined as much as 3.1 percent on Monday and is headed for the lowest close since July 2009, extending its drop from this year’s peak in May to 31 percent. Banks, utilities and copper producer KGHM Polska Miedz SA led declines on a day the MSCI Emerging Markets Index dropped 0.2 percent and the precious metal tumbled 2.6 percent.