A week on the stock markets: Prague avoided and grew in a shorter week, unlike other stock exchanges (Comment)
There was a big surprise with us. The CNB adheres to interest rates at its meetings. What was generally expected, what was not expected was the rate of this growth. The Bank Board raised rates by 75 basis points to 1.50% (50 basis points was expected to 1.25%). It did not have a large effect on the stock market, but the koruna strengthened sharply against the euro by 20 pennies to 25.30 CZK / EUR.
American market
The US S & P500 lost 3.32% (4,307.54 points) from Monday to Thursday. Today it opens stronger by 3 tenths, but almost immediately the direction of trading changed and lost 0.4%. The overall weekly decline will be deeper.
In September (ending on Thursday), the S & P500 index was 4.76% weaker. After January, this is the second loss month this year.
European stock markets
In addition to a small gain on Wednesday, the European STOXX Europe 600 index fell. On Friday, the value of the index is 0.6% weaker shortly before the end of trading. For the whole week, it will be a loss of about 2.4% (452.11 points).
For the whole month of September, the index is weaker by 3.41%. And like the S & P500, it’s the second loss-making month this year after January.
Prague Stock Exchange
On Friday:
The main index of the Prague Stock Exchange PX closed + 0.38% (1,329.91 points) higher on Friday.
The share price of Česká zbrojovka weakened (-2.70%, 576 CZK), following unprecedented growth caused by the published results (see below). Banks slightly corrected today (KB -0.62%, CZK 881 and Erste -0.27%, CZK 958.80) and after the results also Philip Morris CR (-0.13%, CZK 15,880). On the contrary, the stock exchange banner was raised by ČEZ, when the price of its shares rose by + 2.25% (CZK 728.50) today. A few tenths, without significant price-setting information, they also added Avast, Moneta, VIG or Kofola – see last table.
Weekly performance
This time, the business week was shorter by Tuesday’s holiday of Czech statehood. And that seems to be the deciding factor compared to other exchanges. Like other stock exchanges, they weakened by about 2% on Tuesday, Prague was investigated. In the end, the Prague Stock Exchange strengthened by + 1.71% for the whole week (1,329.91 points) Remains others lost more than 2%.
It literally became a rocket that flew all over the steamer Czech Zbrojovka. After excellent results (see below), it recorded a profit of + 20.25% (CZK 576) for the whole week. It’s been an incredible 100% since the beginning of the year! But the other titles weren’t bad either. The only time lagging behind this week was Avast (-1.06%, CZK 167.30). Another joyful spectacle is ČEZ. He makes all business days in the plus for the whole week + 4.97% (CZK 728.50) and it seems that he has settled permanently above the CZK 700 limit.. His total yield (including dividend) is from the beginning of the year over fifty percent. In this case, the engine of growth is still the rapid growth of the price of electricity, which of course has a positive effect on the results in the coming years. It is also worth mentioning the solid performance of banks: Komerční banka (+ 2.03%, CZK 881), Erste Group (+ 1.96%, CZK 958.80).
The month of September also ended. Overall, the PX index gained +3.17% this month(3rd growing week in a row), since the beginning of the year, its price is higher by about + 30%.
Substantial price-setting news from the Prague Stock Exchange
The economic results were reported by Česká zbrojovka (CZG) and Philip Morris ČR (PMČR).
CZG is again very strongly in demand for its products, not only in its main market in the USA. The results grew by double-digit numbers year-on-year and exceeded our expectations and market estimates. For the first time, the results also included an aquarium Colt. Overall, these are very strong results with a view to organic growth (Colt). You can find our more detailed comment here https://bit.ly/CZG_1H21_results.
PMCR reported year-on-year stable numbers, which suffer from a decline in the volume of products sold. However, the price development was positive. The decrease in units sold is due to lower sales of traditional products in border areas providing from restrictive measures. This at least partially offset the sale of heated products. Semi-annual results, which indicate a very decent dividend with a yield of around 8%. You can read more here https://bit.ly/Tabak_1H21_review.
What can be expected next week?
The corporate calendar is empty. Market sentiment will be reported by the spread of the virus. The 3Q21 earnings season will also start slowly overseas, which should be better and could support the markets.
Indices of the week 27. 9. 2021 – 1. 10. 2021
|
After |
Tue. |
Holy |
Thu |
Bye |
t / t |
|
PX Index (Czech Republic) |
1.16% |
holiday |
-0.11% |
0.30% |
0.38% |
|
1.73% |
S&P 500 (USA) |
-0.28% |
-2.04% |
0.16% |
-1.19% |
-0.37% |
|
-3.68% |
Stoxx Europe 600 |
-0.19% |
-2.18% |
0.59% |
-0.05% |
-0.59% |
|
-2.41% |
Data source: Boloomberg; * shortly before the end of Friday’s trading; ** shortly after the start of Friday’s session |
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grow (%) |
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decrease (%) |
Source: Bloomberg