Presidential Election Triggers Market Decline and Currency Fluctuations in Poland

Poland’s second round of presidential elections concluded with a razor-thin margin, with the winning candidate receiving 50.89 percent of the vote, while the runner-up secured 49.11 percent. Voter turnout reached a record-breaking 71.63 percent, the highest ever recorded in the country’s presidential election history.

Financial markets reacted immediately to the outcome. On Monday morning, the main stock index in Warsaw opened with significant losses, falling approximately 2.5 percent. The banking sector was hit the hardest, with some of the largest institutions experiencing declines of more than 7 percent. Other major banks reported losses ranging from 4 to 5 percent.
State-controlled enterprises also saw their shares drop, typically by around 2.5 percent. Medium-sized companies experienced slightly smaller losses, but the general market trend remained negative, with roughly 60 percent of all listed firms trading in the red.

The currency market mirrored this cautious investor sentiment. The Polish zloty weakened slightly against major global currencies. The euro appreciated by 0.42 percent, reaching a value of 4.26732 PLN. The U.S. dollar rose 0.33 percent to 3.75427 PLN, while the British pound increased 0.47 percent to 5.06484 PLN. Despite the daily uptick, both the dollar and the pound have depreciated year-to-date against the zloty.

The current market reaction suggests a degree of investor unease following the political shift. While the currency changes remain within normal fluctuation ranges, the broader financial response indicates caution amid anticipated policy adjustments. Market observers will be closely watching for signs of economic direction in the coming weeks as the new administration begins its term.