Prague Stock Exchange Ends Growth Streak with 1.4 pct Drop
The Prague Stock Exchange (BCPP) interrupted its eight-week growth streak last week and weakened, its PX index losing 1.4 percent to 2,718.9 points, with tobacco company Philip Morris growing the most and energy group CEZ seeing the biggest decline, according to data from the bourse’s website.
In the previous week, the Prague bourse rose by 0.3 percent. Over the whole of last year, the Prague Stock Exchange grew by 52.6 percent, the largest increase since 2004.
“With above-average trading volumes, the stock market struggled in three out of five sessions, recording growth only on Wednesday and Thursday.
Tuesday was the worst day of the week for the stock market, when it fell below 2,700 points. It returned above that level on Thursday,” said Wood & Company broker Tomas Hazucha.
According to Hazucha, the unsuccessful week can be attributed primarily to CEZ shares, which lost 15 percent on Monday and Tuesday alone. In the end, the stock weakened by 10.1 percent to CZK1,202 for the week.
This was due to reports of the government’s plans to begin preparations for a buyout of minority shareholders in CEZ and nationalisation of the company this year.
Neither global markets nor the Prague Stock Exchange benefited this week from investor concerns about tariff wars over Greenland. These concerns only subsided after US President Donald Trump announced on Thursday that he was abandoning this plan.
Another significant event on the markets last week was today’s entry of entrepreneur Michal Strnad’s Czechoslovak Group (CSG) onto the main market of the Amsterdam Stock Exchange.
The sale of shares raised EUR3.8bn (CZK92.2bn), representing 15.2 percent of its share capital. It was :also the largest share subscription of an arms company ever.
During the first day, the shares rose by 30.84 percent to EUR32.71 before 17:00 On the unregulated Free Market in Prague, CSG shares rose by 30.1 percent to CZK791.
After CEZ shares, VIG shares recorded the second largest loss in a week-on-week comparison, falling by 2.25 percent to CZK1,562 apiece.
Solar power plant builder Photon Energy fell by 1.87 percent to CZK10.50 per share, engineering company Doosan Skoda Power lost 0.94 percent to CZK422, metallurgical company Gevorkyan erased 0.83 percent to CZK240, and Komercni banka shed 0.24 percent to CZK1,229. Beverage company Kofola wrote off 0.21 percent to CZK479.
On the contrary, the biggest weekly growth was seen in Philip Morris shares, which added 3.95 percent to CZK20,000.
Erste shares, which have been rising for nine weeks in a row, strengthened by 3.03 percent to CZK2,619, arms manufacturer Colt grew by 2.19 percent to CZK794, drone maker Primoco added 0.88 percent to CZK1,150, and Moneta Money Bank gained 0.7 percent to CZK200. These have been rising for seven weeks. Zichis Rides Growth Wave with Solid Fundamentals
