The koruna strengthened against the euro to the strongest levels since February 2020, maintaining no gains

Updates: 10.11.2021 17:43

Prague – Today, the Czech currency strengthened against the euro to its strongest levels since last February, but did not maintain its gains and traded at CZK 25.22 / EUR around 5:00 pm as on Tuesday in the early evening. Against the dollar, the koruna weakened by 11 pennies today to CZK 21.88 / USD. This follows from the data on the Patria Online server. The PX Index of the Prague Stock Exchange weakened today by more than one percent to 1,373.71 points.

According to analysts, the koruna reacted to the news of stronger-than-expected inflation during the day and strengthened below CZK / EUR 25.20. In October, consumer prices rose by 5.8 percent year on year, the most since October 2008. Compared to September this year, inflation growth accelerated by 0.9 percentage points, which was the most significant acceleration since January 2012.

“With the formation of the government, political risk is eliminated and investors are now starting to look again at the significant difference in rates in the Czech Republic and the eurozone. Higher rates are pushing the koruna up, while the CNB will raise rates by the end of the year percent, “said Cyrrus analyst Tomas Pfeiler.

On 4 November, the CNB Board raised the key interest rate by 1.25 percentage points to 2.75 percent, the most significant rate increase since 1997. This is the highest level of the CNB base rate since December 2008. Analysts expected an increase rates by 0.5 to 0.75 points.

After the previous five days of growth, the Prague Stock Exchange has weakened today. The PX Index fell 1.06 percent to 1,373.71 points. He was pulled down mainly by financial stocks, led by Erste Bank shares. Moneta’s shares prevented a more significant decline, according to information on the stock exchange website.

Today, seven of the 13 stocks that affect the value of the PX index ended trading with a loss. Shares of foreign exchange provider SAB Finance stagnated and the remaining five issues made a profit.

The most significant decline affected the securities of the Austrian banking group Erste. Their price fell by 3.09 percent to CZK 1,020 apiece. According to Patrik Štefek of Wood & Company, the bank has been under selling pressure since the morning due to profit-taking after its shares reached the highest price since March 2018.

The shares of Komerční banka or the insurance company VIG also failed. Komerční banka’s shares depreciated 1.83 percent to 937.50 crowns, VIG issues weakened by more than one percent to CZK 661 per share.

Outside the financial sector, the energy company ČEZ, for example, did not escape the sale. The securities of the semi-state company closed at CZK 748, which was 0.4 percent lower than when the stock exchange opened in the morning. “The weakening was caused by a drop in the price of electricity on the stock exchange, which outweighed the rise in the prices of emission allowances,” said Štefek.

On the contrary, Moneta Bank and the technology company Avast are now among the most profitable stocks. Moneta’s shares rose by 0.62 percent to 89.50 crowns per share. Avast’s issue strengthened by 0.3 percent to CZK 168.

Czech exchange rate:

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Source: Patria Online

Source: České noviny – hlavní události by

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