Oct. 10 (Bloomberg) -- Polish stocks rose for a fourth day, with the benchmark index climbing to the highest in more than two weeks, after partial results showed the government winning a parliamentary majority in yesterday’s general election.
The WIG20 Index rose 3.4 percent to 2,265.59 at the 5:30 p.m. close in Warsaw, trimming this year’s drop to 17 percent.
Prime Minister Donald Tusk’s Civic Platform won 39.2 percent of the vote, according to official results from 99.5 percent of precincts. Tusk’s coalition with the Polish Peasants Party, which got 8.4 percent of the vote, is projected to have 234 seats in the 460-seat parliament, the Warsaw-based Electoral Commission said. Zloty bonds rallied as Tusk, set to become the first re-elected prime minister since communism ended in 1989, pledged to cut the budget gap that has quadrupled since 2007.
“Investors are cheering for this victory of stability,” Jaroslaw Antonik, who helps manage the equivalent of $1.7 billion at Warsaw-based mutual fund KBC TFI SA, said by phone. “Expectations are that the current policy will be continued, probably with some deeper reforms.”
PKO Bank Polski SA, Poland’s biggest bank, advanced for a fourth day, adding 2.6 percent to 34.05 zloty, and Bank Pekao SA, majority-owned by UniCredit SpA, increased 4.1 percent to 145.7 zloty. PZU SA, the largest insurer by market value in central Europe, climbed 4.4 percent to 319.9 zloty.
PBG SA, Poland’s third-largest construction company, closed at the highest level in a month, soaring 8.9 percent to 79.7 zloty, as the company increased its sales forecast by 30 percent to about 3 billion zloty ($943 million) and earnings before interest and taxes by 13 percent to about 260 million zloty.
PKN Orlen SA, the country’s biggest oil company, gained 5.7 percent to 36.79 zloty and Grupa Lotos SA, the second-largest refiner, climbed 5.2 percent to 24.5 zloty. Oil rose for a fourth day in New York as investors bet that fuel demand may increase after a pledge by European leaders to contain the region’s sovereign-debt crisis.
--Editors: Wojciech Moskwa
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