On Wednesday, the Prague Stock Exchange strengthened for the tenth day in a row. The PX index improved by 0.52 percent to 1639.81 points, further improving its more than sixteen-year high. CEZ Group shares in particular helped him to grow. This follows from data on the stock exchange website.
The most traded title was the shares of the semi-state energy company ČEZ, with a share of more than seventy percent. They improved by 2.73 percent to 902 crowns. According to analyst Bohumil Trampota from Komerční banka, the reason for the rapid growth was the statement of former Prime Minister Andrej Babiš about his plan to nationalize ČEZ.
“According to the media, Babiš would buy out the shares of minority shareholders. In our opinion, he would have to offer them a corresponding premium to the market price. And that was the engine of today’s growth,” said Trampota.
Another factor that influenced the positive sentiment around ČEZ is its strategic cooperation with the British company Rolls-Royce SMR. The agreement, which CEZ plans to conclude on October 29, will focus on cooperation in the development of small modular reactors, which should contribute to increasing the energy self-sufficiency of the Czech Republic. Prime Minister Petr Fiala emphasized that the Czech Republic wants to actively participate in the production of these reactors, and the first one could be built in Temelín in the first half of the 1930s.
The emission of cigarette manufacturer Philip Morris CR was also included among the growth ones. The 0.63 percent increase was likely supported by the parent company’s favorable quarterly results, Trampota said.
A more significant strengthening of the Prague Stock Exchange was prevented in particular by a pair of bank titles. Shares of the Erste banking group weakened by 0.32 percent to 1,250 crowns. Komerční banka’s securities were written off by a quarter of a percent.
On Wednesday around 17:00, the koruna traded at the rate of 25.26 crowns/euro and 23.44 crowns/dollar. Compared to early Tuesday evening, the Czech currency weakened against the euro by three pennies and against the dollar by a dime. This follows from data on the Patria Online server.
