PX index weakens for third week in row, down 3 pct in week 11

Prague, March 13 (CTK) - The Prague Stock Exchange's (BCPP) headline PX index lost 3 percent to 2,515.95 points over the past week, weakening for the third week in a row and hitting its lowest level since early December, according to the bourse's website.

Engineering company Doosan Skoda Power posted the biggest rise, while drone maker Primoco was the worst performer.

The previous week, the PX index lost 2.2 percent.

"The past week was marked by the impact of the conflict in the Middle East in the form of restrictions on traffic through the Strait of Hormuz and the associated sharp rise in oil prices. Negative sentiment was felt by the stock exchange virtually all week, the exception being Tuesday when the index temporarily rose back above 2,600 points. Overall, however, the Prague market closed the week at its lowest level since the beginning of last December," said Wood & Company broker Barbora Zelena.

Activity on the Prague Stock Exchange has decreased, noted Komercni banka analyst Bohumil Trampota. Trading volume amounted only to about 80 percent of the long-term average. "From our point of view, this is mainly due to weaker interest in trading in CEZ shares. Liquidity seems to have dried up. Trading volumes in its shares have fallen to barely half of the average," he said.

According to Zelena, Primoco shares posted the biggest loss of 11.76 percent to CZK900 over the week. Solar power plant builder Photon Energy followed close behind with a 6.09 percent drop to CZK7.55. Energy group CEZ weakened by 4.49 percent to CZK1,150, Moneta Money Bank by 4.32 percent to CZK181.80 and Erste Group Bank by 2.85 percent to CZK2,253. Insurer VIG lost 2.6 percent to CZK1,500, beverage maker Kofola 2.08 percent to CZK470 and metallurgical company Gevorkyan 1.69 percent to CZK232.

Further, arms maker Colt wrote off 1.67 percent to CZK885 and Komercni banka dropped 1.59 percent week-on-week to CZK1,113. Tobacco company Philip Morris lost 0.5 percent to CZK19,800.

Arms maker CSG posted a substantial loss on the week, down 6.75 percent to CZK691 on the Prague Free Market, Trampota added. It was probably a reaction to the elimination of one of its subsidiaries from the NATO tenders, he said. "From our point of view, reputation will suffer the most, but it will not have a significant impact on the firm's financial performance. So the market reaction seems to us to be excessive," he noted.

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