10.11.2020 08:59
Consolidation after yesterday’s growth (?), CEZ announced results
Stock markets entered the new week with rocket growth, especially European indices. E.g. DAX jumped + 5% up yesterday after trading on the promising results of the Pfizer vaccine. There is still a long way to go to the real application of this vaccine, but it is clear which sectors or regions investors would prefer if covid could be brought under control (Europe, cyclical stocks, banks). Wall Street finally wiped out a large part of its gains on Monday, due to a decline in technology companies, the SP500 index closed with a gain of “only” + 1.2% at 3550 points. Futures subsequently weakened overnight, but are now trading at a low profit, with a similar appearance in Europe (+ 0.2%). After yesterday’s growth, short-term waves and profit-taking in significantly growing sectors or stocks cannot be ruled out. The banking index added + 12% yesterday, but most banks are “only” trading back at the levels of August or September. Their further growth in the coming weeks cannot be ruled out. CEZ reported in Prague today. Revenues reached CZK 49.3 billion (below estimates), EBITDA CZK 12.2 billion – within the expectations of analysts. Net profit for the past quarter lagged behind due to depreciation, but adjusted net profit was CZK 2.3 billion. The company increased its EBITDA and net profit estimate for 2020 to the upper limit of previous estimates (CZK 64 billion and CZK 23 billion, respectively). CEZ shares could maintain the positive mood from the previous days. Overall, the PXTR index jumped to the level of 1740 points yesterday, at the level of 1747 points lies the 200-day moving average. We will therefore monitor whether the domestic market manages to overcome this level in the coming days.
Pavel Hadroušek, broker, Fio banka, as
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