4.2. Capital markets

2014 on the Warsaw Stock Exchange did not favour bullish investors: the broad market index WIG closed the year at a practically unchanged level while WIG20 stocks lost ca. 4% on average. The weakness of the Polish stock market was driven by many factors: the pension system reform and uncertainty about the future inflows of pension fund cash to the stock exchange; the Ukrainian-Russian conflict which affected companies present in Eastern markets and prompted foreign investors to reduce exposure to Russia and its neighbours; weakness of European stock exchanges in the wake of yet another wave of economic slow-down in the eurozone; debt investment funds being a more attractive investment option for individual investors; as well as factors idiosyncratic to the Warsaw Stock Exchange, including interest rate cuts which affected the revenue of banks and falling commodity prices which affected commodity stocks.

Under these conditions, the number of initial public offerings on the WSE was not significantly higher than in the previous years. There were 28 new listings in 2014 (23 IPOs in 2013, 19 IPOs in 2014), including 10 companies transferring from NewConnect, the market for small and medium-sized enterprises with a strong growth potential.