The main Polish stock index touched its first record high in 19 years, briefly surpassing a level not seen since before the global financial crisis. On Friday, the WIG20 Index rose as much as 0.5%, hitting 3,928 points, which broke through the previous closing record set just before the U.S. subprime mortgage crisis.

For a long time, this Warsaw benchmark index had lagged behind both European and emerging market indices, which had already far exceeded their 2007 peaks. The Warsaw capital market is by far the largest in the European Union's eastern region. After years of market slump and little investor interest, sentiment began to improve in late 2023, coinciding with a change in the political landscape and a thaw in relations between Poland and the European Union.

Since then, dividend payouts from Polish state-owned enterprises have surged, and several companies have halted investment projects pushed by the previous administration. The WIG20 Index surged 45% in 2025 and has added approximately 23% more this year. Investors have been increasing their exposure to the local stock market, drawn by Poland's robust economic growth, strong corporate earnings, and improved corporate governance standards.

Leading the rally in the Warsaw market this year are energy group Orlen SA, which has benefited from a surge in global oil prices, as well as aluminum products manufacturer Kety SA and PKO Bank Polski SA. Both the Euro Stoxx 50 and major emerging market stock indices have also hit record highs this year.

With this rally, the valuation discount that Polish stocks once held relative to their peers has been completely erased. On a forward earnings basis, the market is now trading at a slight premium to the MSCI benchmark index. The Polish government has introduced tax incentives to encourage residents to return to stock market investment, fueling expectations that the index can continue to climb. The government believes that cultivating a broader base of equity investors is crucial for sustaining economic growth. Finance Minister Andrzej Domański last year pledged to rebuild a national culture of equity investing that has been largely absent for years.