The stock market is in a correction ahead of the long weekend. Next week could be interesting.

• The shortened week brought a cooling of sentiment on the WSE and declines in the main indices, led by the WIG20.
• The last four sessions have seen a sell-off in almost all blue chips, but investor activity has been moderate.
• On Friday, August 15 , Donald Trump will meet with Vladimir Putin in Alaska to discuss Ukraine , and the tone of the meeting may (but does not have to) determine next week's market sentiment.

This past week, the Warsaw Stock Exchange (WSE) was able to take a break from breaking consecutive multi-year records . This time, the main indices recorded declines over the last four sessions. The WIG20 fell by 2.3%, while the broad WIG index saw a slightly smaller decline (-1.7%). The mWIG40, which groups mid-cap companies, lost 1.6%, while the sWIG80 ultimately recorded a cosmetic 0.1% decline.

Low volatility ahead of Trump-Putin meeting. "Maybe, but not necessarily"

The slight correction that hit the WSE is nothing to worry about, as the WSE still has plenty to be proud of this year in terms of rates of return (rates of return for the WIGi and WIG20 exceed +35 percent). However, in the case of the WIG20, there is another important aspect to consider.

"It's important to remember that part of this correction is the result of adjusting reference prices for the large dividends paid by the largest companies, as this index is a price index, not an income index. This fact should be taken into account when assessing the state and prospects of the market," points out Michał Stanek of Q Value.

In his opinion, for some stock exchanges, the most important factors are the US administration's decisions regarding tariffs, for others the uncertainty about the state of the US economy and the related expectations for Fed decisions, and for still others the hopes and fears related to the war in Ukraine. The Warsaw Stock Exchange (GPW) is among the latter.

- Uncertainty regarding the end of the war in Ukraine, or at least the freezing of military operations, still remains, and the coming days after Friday's talks between the presidents of the USA and Russia may, but do not necessarily have to, bring any closer to resolving the problem - the expert points out.

As a reminder, the Trump-Putin meeting will take place on Friday, August 15, at 9:30 PM Polish time. Its implications, which investors will have two days to digest over the weekend, could prove crucial for Monday's opening on the Warsaw Stock Exchange.

The largest companies jointly participate in the correction; Diagnostics on the rise

Among the largest companies, only one did not end the shortened week with declines. Once again, the banking sector is a positive performer. mBank gained nearly 2% for the week.

Clothing group CCC has had another very weak session. After depreciating from around PLN 190 to PLN 171 per share last week, the stock closed at PLN 164 per share on Thursday (August 14), down another 4 percent. We wrote about the reasons for this in CIS a week ago .

However, the stock market isn't just about champions. In the mid-cap index, the mWIG40, Asseco Poland continued its downward correction (-6%). Synektik, on the other hand, stood out positively in the broader market, with its share price reacting relatively positively to the news of signing further contracts for the supply of Da Vinci robotic systems (up 4%).

Diagnostyka has enjoyed a streak of 13 consecutive trading sessions of growth. During this time, the price rose from PLN 180 to PLN 203 per share, setting a new all-time high. Since its February debut, Diagnostyka's shares have gained nearly 60 percent.