The iShares MSCI Poland Capped Investable Market Index Fund (NYSEArca: EPOL) and the Market Vectors Poland ETF (NYSEArca: PLND) each lost about 1% Monday following controversy involving the country’s central bank governor, Marek Belka.
“The Wprost news magazine on Saturday released a recording of a conversation in a restaurant. During the conversation Belka told a minister he would be willing to help the government out of its economic troubles if the finance minister was fired, although as a governor he is supposed to be impartial. Belka also showed no respect to the central bank’s Monetary Policy Council, which sets rates. Belka chairs the council,” reports Emerging Equity.
Concerning fundamental news arrived just as EPOL was showing encouraging technical signs.
“EPOL put in a bullish reversal last Friday, bouncing off support of the 20-day EMA on a pick up in volume. For the second session in a row, the price action bounced off support around the $30.30 to $30.40 area to close well off the lows of the day. We look for the uptrend to resume within the next few days,” notes Deron Wagner of Morpheus Trading Group.
EPOL and PLND were caught in the Russia-induced downdraft caused by that country’s invasion of Ukraine. However, like Russia ETFs, the two Poland funds have bounced back though not to the same extent as their Russian counterparts. Both Poland ETFs are up more than 3% over the past three months. [Poland ETFs Punished by Russia’s Slide]
The central bank issue could prove to be no more than a near-term blip for the Poland ETFs because, as Emerging Equity reports, it appears unlikely that Belka will resign.
Additionally, EPOL and PLND are not the first country-specific ETFs to contend with a central bank controversy. Earlier this year, the Global X Nigeria Index ETF (NYSEArca: NGE) came under pressure after Nigerian President Goodluck Jonathan suspended Central Bank Governor Lamido Sanusi. [Central Bank Flap Weighs on Nigeria ETF]
NGE, the lone Nigeria ETFs, has still managed to gain 16.5% over the past three months.
iShares MSCI Poland Capped Investable Market Index Fund
