Saturday, 22 October 2011: 2:20 PM
The article presents a study of sectoral fundamental strength based on companies listed on the Warsaw Stock Exchange. The authors employed selected methods of fundamental analysis in connection with sector assessment in view of economic and financial indicators chosen from among the group: liquidity, profitability, company debt, management efficiency and market indicators. For sectors identified at the Warsaw Stock Exchange, the TMAI synthetic measure of development was calculated in order to draw up sector ratings and to define their attractiveness[1]. Then, changes occurring in the studied time period were examined. The proposed procedure allows for the evaluation of individual sectors from the point of view of attractiveness for stock investors. It was also examined how the condition of the studied sectors influences the economy’s condition and the recent years’ crises. The study made use of economic and financial data, retrieved from Notoria Serwis, regarding companies included in individual sectors. The studies focused on the period from 2005 to 2010. This enabled monitoring change in the attractiveness of particular sectors over time in the periods of both bull market and bear market caused by the 2007-2009 crisis.
Keywords: fundamental analysis, sectoral analysis, stock exchange.
[1] Procedure for calculating of TMAI is presented in eg. Tarczyñski W. Taksonomiczna miara atrakcyjnoœci inwestycji w papiery wartoœciowe, Przegl¹d Statystyczny Nr 3/1994.