LW Bogdanka coal mine stock exchange debut ‘ends months of deadlock on WSE’

Rights to shares of the coal miner LW Bogdanka gained 16.9% to PLN 56.10 at their Warsaw Stock Exchange debut. The issue price was set at PLN 48. The value of the offer reached PLN 528 mln.

Proceeds from the issue will be allotted to build new and modernise old technical facilities at Stefanow Field, which will double the company’s coal production capacity by 2014.
The debut was commented on by the Treasury Minister Aleksander Grad: “This is a good day for the company, for our bourse and a very good signal for the market, as it shows we have ended this deadlock we were in the past few months. I believe that thanks to this debut our future privatisation plans, connected with debuts of new companies on WSE, such as power group PGE, new issue for PKO BP bank and plans of many more firms, which we intend to float, will have better possibilities of completion”.
CEO of LW Bogdanka also commented on the matter: “This has been a period of many disturbances and turns in the history of Bogdanka, but the important is the happy ending. For the first time in history the Polish stock exchange sees the debut of Polish coal mining company, and today shows that mining can be a great business. Bogdanka has a strong economic foundation, splendid investment programme, and I am deeply convinced it will bring many profits to our investors.” (WSE)

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ECONOMIC MONITOR

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

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