Ciech SA posted the biggest drop this month after PKO Bank Polski SA downgraded Poland’s largest maker of soda for glass production to sell from hold.
The shares fell as much as 2.3 percent and traded 1.5 percent lower to 26.59 zloty, the steepest decline on closing basis since May 31, as of 1:34 p.m. in Warsaw. Ciech’s price-estimate was set at 23.06 zloty by PKO. The number of shares traded was 263 percent of the stock’s three-month daily average volume, data compiled by Bloomberg show.
“The business environment remains unfavorable,” Monika Kalwasinska, a Warsaw-based analyst at PKO, said in a report today. “The economic slowdown and weaker demand triggered overcapacity in Europe, resulting in pressure on the soda market.”
Sales at state-controlled Ciech will fall 17 percent from a year ago to 3.62 billion zloty ($1.1 billion) in 2013, PKO said. Poland is battling a slowdown as the recession in the 17-nation euro area, which buys 52 percent of Polish exports, crimps growth. The European Commission last month cut Poland’s 2013 growth forecast to 1.1 percent from 1.2 percent.
The stock has gained 19 percent this year, outperforming the WIG20 Index, which fell 3.6 percent in the same period.
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