Prague – The index of the Prague Stock Exchange today fell by 1.16 percent to 1136.73 points, thus closing at the lowest level since May 20 last year. The main reason was the weakening of the shares of the energy company ČEZ. This follows from data on the stock exchange website. The PX index falls for the fourth day in a row. The koruna weakened against both major world currencies.
ČEZ securities fell by 3.95 percent to 911 crowns. “They closed the lowest since the end of March this year,” pointed out Wood & Company analyst Vojtěch Boháč. Shares of the semi-state energy group are being pressured by indications of upcoming measures that should be introduced at the level of the European Union to manage the energy crisis, said Fio bank analyst David Brzek.
Another seven out of ten issues, which have an influence on the value of the stock market index, closed today’s trading in the red. The most significant decline affected the shares of Photon Energy, which deals with the construction of solar power plants. They closed trading at a price of CZK 60.60, which represented a decrease of 4.11 percent.
The shares of Kofola and Zbrojovka Colt CZ did not do well either. Securities of the beverage company fell by more than 2.5 percent to CZK 269. The arms manufacturer’s emissions weakened by 1.48 percent.
Austrian banking group Erste was the only major gainer today. Their price increased by 0.69 percent to CZK 554.40 per piece. “Erste strengthened despite the negative sentiment in the Western European banking sector,” said Boháč.
Two other bank titles traded in Prague, Komerční banka and Moneta, finished today in the red. The first of them wrote off 0.52 percent, the second fell by 1.21 percent.
Shares of the pharmaceutical chain Pilulka Lékárna resisted the decline today, but they only stagnated at Friday’s rate.
The koruna weakened against both major world currencies today. Against the euro, it lost five pennies compared to the previous close, and today around 17:00 it was traded at the exchange rate of CZK 24.59/EUR. Against the dollar, the Czech currency weakened by 32 halers to 24.79 CZK/USD, according to data from the Patria Online server.
According to Purple Trading analyst Jaroslav Tupý, the news that Russia is stopping gas supplies to Europe until the sanctions are lifted contributed to the general negative mood. The euro remained below parity with the US dollar against the dollar today. “Hand in hand with this, there was a noticeable tendency to weaken in Central European currencies as well. Overall, trading was quiet, when it was marked by a holiday in the United States,” noted Jan Vejmělek from Komerční banka.
According to him, the data on the development of real wages for the second quarter did not help the koruna much, even though the result was slightly higher than what the market expected. “The development of wages has thus become one of the pro-inflationary risks. Given the rhetoric of the dovish majority at the head of the CNB, this does not mean that the CNB will raise interest rates at its meeting at the end of September,” he says.
Real wages after including inflation in the Czech Republic fell by 9.8 percent year-on-year in the second quarter of this year, and according to analysts, Czechs became the most impoverished in the country’s history since 1993. Although, according to the Czech Statistical Office (ČSÚ), the average wage rose by 4 compared to the same period of the previous year .4 percent to 40,086 crowns, but the real one has been falling for three quarters.
Exchange rate of the Czech currency:
|Previous conclusion||Today around 5:00 p.m|
Source: Patria Online
stock exchange currency BCPP conclusion