Czech equities, as measured by the PX Index, gained 2.0% in the past week and closed at 1,316.2. The overall volume of trading on PSE reached USD 1,616.8m, 52.4% above its 12M weekly average of USD 1,060.7m.
All securities jumped towards the end of the week as the US government introduced its rescue plan. Banks were the biggest gainers during the past week. Komercni banka got lifted by CZK 300 on Friday’s close. O2 CR, and are being traded ex-dividend of CZK 50, EUR 0.85 and EUR 0.28 respectively since the past week. Real estate developers were the biggest laggards. Both companies lost about 35%.
For this week we do not expect any major corporate catalysts. CNB board will decide about interest rates on Thursday (September 25). We do not expect any changes but we project one more 25bps cut towards the end of the year.