WARSAW (Thomson Financial) - Poland's second richest man Roman Karkosik expects a deep sell-off in Warsaw stocks this year, but will use it to buy more shares, he told daily Gazeta Prawna in an interview.
Karkosik, who owns controlling stakes in chemicals company Boryszew, steel and pipe producer Alchemia and biofuels producer Skotan among others, said investors should be wary of stocks which are valued at 50 times their annual earnings. He declined to give details.
"I'm waiting for an even deeper correction and I think it will happen this year," Karkosik, whose wealth is estimated at 1.8 bln usd, was quoted as saying by Gazeta Prawna. "Shares in the companies which are most overvalued should drop even 50 pct."
Warsaw bourse's broad market WIG index suffered its biggest fall in seven years on August 16 due to global fears over credit crunch. It has recovered since then, but remains 9 pct below its all-time high in early July.