A week on the stock markets: European and American stock exchanges decently, plus Prague lost – Commentary
Macro data turned out to be mixed this week. Consumer confidence is deteriorating in our country, it is low in Germany. In the US, by contrast, personal consumption indicates strong demand. The Fed’s notes looked like a dovish with a view to rising rates at the next two sessions by 50 basis points each. In the eurozone, respectively the ECB, it looks like an increase of 25 basis points in July and the same step is expected in September.
American market
It all ends once. Fortunately (in this case). We finally managed to break the chain of seven! weekly losses in a row. The main S & P500 index, with the grace of a butterfly flight, again exceeded 4,000 points. In the first four days (Mon-Thurs) this week, the index added + 4.01% (4,057.84 points).
Today it opens in the positive and shortly after the start it grows by + 1.63% (4,124 points). This will further improve the current weekly performance to about + 5.5%.
European stock markets
Today, the European index STOXX Europe 600 did not know any other direction than upwards, in fact, the whole week was quite positive, when the correction took place only on Tuesday, the other days the price increased. Today, the index has been growing practically since the beginning of trading and shortly before the end of the session it adds + 1.31% (443.45 points). For the whole week, it looks like growth or less than 3%.
Prague Stock Exchange
Friday
The Prague Stock Exchange closed at red zero today. It traded in a narrow belt with a decline at the very end of the session, which turned all daily gains into losses. The PX Index ended slightly weaker (-0.02%, 1,310.33 points). This contrasts with most European parquets, which were incomparably better at it.
Today, the leader was the insurance company VIG, which pleased investors with a profit of + 1.62% (CZK 564). Today, Komerční banka, unlike other banks that trade in Prague, strengthened by + 1.11% (CZK 730). Kofola defended the CZK 300 level and added + 1.0% (CZK 300). Philip Morris CR also managed to strengthen (+ 0.11%, CZK 17,820).
At the other end, Monety shares lagged the most (-1.02%, CZK 78). Erste (-0.69%, CZK 718) and CEZ (-0.46%, CZK 1,085) did only slightly better. Avast lost 0.73% (CZK 141.90) without news.
A table with the daily and weekly performance of indices and stocks is at the end of this commentary.
Prague Stock Exchange
Weekly performance
While other European stock exchanges and indices on the other side of the Atlantic strengthened decently, the Prague Stock Exchange huddled weak on its tail. It is clear from the table below that the PX index weakened especially at the beginning of the week. Where others grew, PX, on the other hand, fell. And once it was over, the profits against the others were meager. The main PX index lost 2.48% (1,310.33 points) for the whole week.
This time it is necessary to highlight the performance of Colt CZ (formerly Česká zbrojovka). Every day, and after a quarterly strengthening (below), the price jumped significantly. In total, she made a profit of + 6.71% (CZK 620) in the week. Before the quarterly results (below), Kofola strengthened (+ 1.01%, CZK 300) and Philip Morris CR also finished almost one percent stronger this week (+ 0.68%, CZK 17,820). Komerční banka also managed to strengthen (+ 0.48%, CZK 730). But that was unfortunately all, most of the titles for the week ended up in Red Territory.
After large profits in the past two weeks, when CEZ’s shares grew on the basis of speculation about the possible redemption of minority shares, this time investors sold and realized some of the quick profits. CEZ was the worst this week and recorded a loss of 7.50% (CZK 1,085). Pilka paid CZK 50 for small clothes, and in relative comparison this means a decrease of 4.17% (CZK 1,150). VIG fell at the beginning of the week, when it started trading without the right to a dividend (EUR 1.25). At the end of the week, part of the losses were erased, but in the week it weakened by 1.91% (CZK 564). Erste Group shares also started trading on Monday without the right to a dividend (EUR 1.60), but the impact was not as negative as at VIG. Erste corrected slightly, but only at the end of the week, it lost a total of 1.37% (CZK 718). And perhaps a mention of Moneta (-1.27%, CZK 78), which is trading below the merger price (CZK 82) with the Air Bank Group. Finally, Avast. The stock weakens for the fourth week in a row (-0.80% w / w, CZK 141.90) and the price premium offered by Norton has risen to 45%!
A table with the daily and weekly performance of indices and stocks is at the end of this commentary.
Substantial price-setting news from the Prague Stock Exchange
The event of the week was the quarterly results of Colt (formerly Česká zbrojovka). Massive demand not only in the main US market and the consolidation of the acquired Colt meant a high increase in arms sales and a substantial increase in economy. Colt reported very strong numbers. You can find our comment here https://bit.ly/Colt_1Q22.
Philip Morris ČR shareholders approved a dividend of CZK 1,310 (below). This was expected, yet positive market reactions can be seen.
What can be expected next week?
Kofola will present its quarterly results on the market on Wednesday (our commentary is here https://bit.ly/Kofola_e1Q22). Finally, a quarter without restrictions will mean decent year-on-year growth.
On Monday (May 30, 2022), Philip Morris ČR shares will be traded for the last time with the right to a dividend. The dividend is CZK 1,310 (gross income + 7.3%). You can read more here https://bit.ly/PMCR_divi_approved.
The same fate of Colt’s shares awaits Tuesday (May 31, 2022). A dividend of CZK 25 means a gross yield of + 4.0%.
Other factors affecting stock market trading will include covid, Ukraine and geopolitical tensions.