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Konrad Księżopolski: small companies are the most attractive segment valued on the WSE

Head of CEE Equity Research at Haitong Bank Warsaw analyzes WSE perspectives and the biggest potential sectors in 2018.

According to Konrad Księżopolski, assuming a favorable macroeconomic environment, the remaining strong domestic demand and the expected investment growth should keep increasing on the WSE. In an exclusive interview for Parkiet, the analyst sees a big potential and grow in the SME sector, where small and medium-sized companies' share prices, unlike the biggest companies.

"Last year, the index of small companies listed on the WSE (sWIG80) gained just about 2 percent, while all other indexes generated a double-digit rate of return. Looking at the P/E ratio in the last 10 years, we see that each of the main WSE indexes recorded higher levels at this period. On the other hand, sWIG80 has a current profit of about 10x are at five years low. This means that small companies have the highest potential for growth among all WSE indexes. Given that SME's would show good earning results" says Mr. Księżopolski.

The Head of Haitong Bank CEE Equity Research also named the sectors and companies that are worth to take a closer look at in 2018. According to the analyst, the IT sector looks attractive and among his favorites are LiveChat and Comarch. In the media segment, Mr. Księżopolski has a preference for Wirtualna Polska, and among telecoms he names Play. In addition, the analyst also pointed out retail companies (LPP and CCC), residential developers (Dom Development and Robyg) and commercial developers (GTC). From the industrial sector, he names PKP Cargo.

The interview is also available online.