The stock market weakened after Monday’s record, CEZ dragged it down, banks prevented losses

Prague – After Monday’s record, when it broke the 1600 points mark after 16 years, the Prague Stock Exchange weakened slightly today. The PX index fell by 0.26 percent to 1596.11 points. The stock market was dragged down by the discounting shares of the energy company ČEZ, while the securities of banking houses ended in positive numbers. This follows from the data of the stock exchange website. Today, the koruna strengthened against the euro and lost against the dollar.

Today, seven of the 11 major titles affecting the value of the PX index finished trading in negative values ​​or at zero. “The total volume of trades was below average, for around 240 million CZK, with ČEZ shares securing around a third,” commented Wood & Company broker Vladimír Vávra. CEZ Group shares weakened by 1.26 percent to CZK 903.50. Insurance company VIG did not do well either, which wrote off 1.02 percent and traded at CZK 780. The securities of the metallurgical company Gevorkyan fell, losing 0.78 percent to CZK 256, and the shares of the tobacco company Phillip Morris CR, which worsened by 0.13 percent to CZK 15,360. The Kofola drinking fountain and the Colt armory remained at zero.

According to commentators, banking stocks were the main obstacle to further losses on the stock market today. Shares of the Austrian banking group Erste did well, improving by 0.25 percent to CZK 1,184.50. Moneta Money Bank added 0.19 percent to CZK 105, and Komerční banka added 0.31 percent to CZK 797.

The main index of the Prague Stock Exchange, PX, surpassed the 1,600 mark for the last time in June 2008, before the outbreak of the global financial crisis. Analysts do not rule out reaching a record level next year. According to them, the Prague Stock Exchange benefits mainly from the favorable mood on global markets, the drop in interest rates of the Czech National Bank and the weaker koruna.

The koruna did well against the euro today, but it lost against the dollar

Today, the Czech currency strengthened against the euro and, on the contrary, lost against the dollar. Compared to the euro, it improved by six pennies to 25.34 CZK/EUR since Monday evening, and weakened by four pennies to 23.30 CZK/USD against the dollar. This follows from data from the Patria Online server around 5:00 p.m. today.

Despite today’s strengthening against the single European currency, the shrinking difference in interest rates between the Czech Republic and the eurozone will continue to push the koruna into weaker positions, believes Jaroslav Tupý from Purple Trading. He added that on Wednesday the statisticians will publish the industrial producer price index, which, according to analysts’ expectations, will probably show a decrease in inflationary pressures.

“There will be a meeting of the European Central Bank on Thursday, which will most likely leave interest rates at the current 4.25 percent, so we cannot expect significant support from this side for moving the exchange rate of the koruna to stronger values,” said Tupý.

Exchange rate of the Czech currency:

Source: Patria Online

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