A week on the stock markets: Negative mood, markets fell, Prague lagged the most – Commentary
From the macro data, industrial production and US retail sales were better. The relatively strong monthly indicators do not quite indicate that the US economy should be in recession. Important indicators in China such as retail investment, industrial production and fixed income fell short of expectations. This could indicate a slowdown in the economy there.
American market
The main index S&P500 increased by a very modest +0.08% (4,283.74 points) in the first four days of trading (Mon-Thurs). Today it opens deep in the negative (-0.6%) and continues to decline. The mood is below freezing with the prospect of further tightening of monetary policy. It is that the growth streak will be broken this week. After four weeks of growth (a total of approx. +10%) in a row, the S&P500 will record a loss this week. It could be about -1% for this week.
European stock markets
Of course, a negative start will not add to European shares, quite the opposite. The STOXX Europe 600 index is down by 0.58% (438.19 points) shortly before the end of trading today. For the full week, it will most likely be a modest loss of around 0.5%.
Prague Stock Exchange
Friday
The surrounding stock exchanges and most other parquets in Europe fell today, including our Prague stock exchange. The main index of the Prague Stock Exchange, PX, lost 0.71% (1,221.54 points). There were no other corporate quotes available today. Trading is thus guided by global sentiment.
The duo Komerční banka (+1.15%, CZK 615) and Avast (+1.05%, CZK 202) saved the stock exchange from a bigger drop today.
It was pushed down by ČEZ (-1.98%, CZK 1,039), Philip Moris CR (-1.96%, CZK 17,000), Pilulka (-1.96%, CZK 1,000) and insurance company VIG (-1, 22%, CZK 565). VIG reported quarterly results yesterday, which were better than market expectations, but lacked a full-year outlook. This means uncertainty for investors in the second half of the year.
A table with daily and weekly performance of indices and stocks is at the end of this commentary.
Prague Stock Exchange
Weekly performance
Except for Tuesday, the stock market was in a negative mood. The PX index lost 3.19% (1,221.54 points) for the whole week.
Only smaller titles grew. After last week’s loss, Avast added +3.27% (CZK 202). Philip Morris CR (+1.55%, CZK 17,000) also performed decently without news. It is already the fifth week of growth in a row for PMČR events.
The large banks Erste Group (-6.29%, CZK 572.40) and Komerční banka (-4.50%, CZK 615), as well as ČEZ (-4.68%, CZK 1,039) lost their value this week the most. This is given by the information on the special tax for the banking and energy sectors. Its introduction is apparently certain, but the specific parameters are still unknown. It is possible that the mentioned titles will continue to be under pressure until we know how the special tax will affect their management.
A table with daily and weekly performance of indices and stocks is at the end of this commentary.
Significant price-setting news from the Prague Stock Exchange
On Thursday, the VIG insurance company reported its quarterly results. The reported numbers beat the market consensus, however, the share price fell. The reason may be the absence of a full-year outlook – i.e. the uncertainty regarding the second half of the year. (we don’t track the title)
What can we expect next week?
The corporate calendar is empty in the Czech Republic next week.
It will thus monitor the results of the ending season on the surrounding markets or, for example, the development of energy commodity prices.