Prague Stock Exchange: Stocks Inward The Index

Lots of TRF readers direct maintain spare millions of dollars. Maybe you lot tin purchase stocks from the whole world. You may hold upward underexposed to Czech Republic – which enjoys the growth higher upward 4%, has a 2% unemployment, together with its stocks by together with large facial expression undervalued.

Patria.cz is i of the professional person servers that embrace the stock market. You may detect the electrical current prices (or prices delayed past times fifteen minutes) of the large Czech stocks, smaller Czech stocks (the "Free" market), Central together with Eastern European stocks, Western European stocks, together with the U.S.

The Prague index (PSE) oscillates simply about 1066 every bit of this moment. See the current composition.




The index is composed of thirteen stocks correct now. The economic scheme is doing much amend than a decade agone – but this index was genuinely nigh 1800 inward 2007. Influenza A virus subtype H5N1 purpose of this decrease reflects the fact that some of the most of import vibrant companies aren't included inward the index – together with are fully owned past times Western owners (the internet dividend outflows stand upward for a stunning 5% of the Czech GDP). But some of it agency that the stocks are by together with large undervalued.




Many of the thirteen stocks are semi-primarily traded at a Western capital. Only vi genuinely direct maintain a Czech (CZ) ISIN. The remaining vii direct maintain ISINs of other countries – well, i of them, Philip Morris CZ, has the ISIN of Czechoslovakia (CS). So if you lot count CS every bit half-Czech, precisely half of the stocks direct maintain Czech ISINs.

Erste, VIG direct maintain Austrian ISINs – primarily traded inward Vienna. Avast together with Stock direct maintain the British ISIN – primarily traded inward London. CETV has Bermuda ISIN together with Pegas Nonwovens direct maintain the Grand Duchy of Luxembourg ISIN – upward to recently, Grand Duchy of Luxembourg headquarters, too.

In the table, the showtime column is ISIN, the 2d is the total publish of stocks (which includes the global number), together with therefore you lot direct maintain the complimentary float factor, a coefficient upward to i telling you lot what fraction of the stock is freely traded (globally), together with and therefore there's a reduction gene applied to some companies to brand certain that the pct that the companionship makes inward the index doesn't overstep 20%.

So the "reduced marketplace capitalization" inward the final column divided past times 3 (or so) happens to hold upward the fraction that the companionship contributes to the index. Don't forget that i U.S.A. dollar is some 22 crowns, the euro is 26 crowns.

OK, hither are the companies:

Erste, 20% of the index

Erste Bank is the showtime banking enterprise inward Republic of Austria – together with the possessor of the of import Česká spořitelna (Czech Sparkasse of a sort), the #2 banking enterprise inward Czechia. (The #1 is ČSOB correct now, The Czechoslovak Business Bank, owned past times Societe Generale, the French. See the results of banks for 2017.) During communism, Česká spořitelna was the key mainstream banking enterprise for regular Joe savers. This Czech constituent is rattling of import for Erste today.

The cost of this stock tends to oscillate intensely. The before-tax dividend was EUR 1.20, the electrical current cost is most EUR 35.5 (or CZK 920 – together with this cost has already been "safely" higher upward 1000, but years ago, it used to hold upward much lower).

ČEZ, 20% of the index

The primary mightiness utility. The Czech authorities owns some 60%. The electrical current cost is CZK 520. It has been below 400 inward recent years. But recommended prices overstep CZK 600, too. One-third of their unloose energy is nuclear. They are somewhat active inward the choice unloose energy stuff every bit good but it may hold upward simply to brand their icon to a greater extent than "modern". Coal is the king. The pre-tax dividend was CZK 33.

Komerční banka, 20%

The #3 bank, mostly dealing alongside businesses every bit clients. Well, it's almost #2-#3 necktie alongside Česká spořitelna. Societe Generale (FR) owns a majority. KB has gotten lots of buildings of the fundamental banking enterprise – the State Bank of Czechoslovakia – during communism which is why it may direct maintain mainly corporate clients today. Current cost is CZK 935, the pre-tax dividend was CZK 47.

Moneta Money Bank, 9%

That's the novel squall picked past times what used to hold upward GE Money Bank. Yes, it was owned together with sold past times General Electric, together with it's arguably doing much amend than General Electric itself now. GE had acquired some banks that were making no turn a profit simply about 2000, similar Agrobank, together with it turned into an amazing source of dividends. Moneta deals alongside lots of clients who direct maintain mortgages together with similar things.

The dividends were CZK viii earlier taxes – the current, post-dividend cost is CZK 77. P/E is below ten. To popular off far to a greater extent than shocking, Austria's Raiffeisen Bank (6th banking enterprise inward Czechia, fifth is Moneta itself) was heard every bit existence interested inward buying Moneta today. The cost of the stock could easily saltation past times 20% or more, maybe fifty-fifty rattling soon.

Some Slovak billionaire Mr Krúpa was threatening Moneta alongside some terrible lawsuits most the privatization of Agrobanka. All these lawsuits direct maintain failed inward the past times together with they're expected to neglect i time to a greater extent than together with again. Agrobanka has been settled, the fundamental banking enterprise together with courts direct maintain e'er agreed therefore far, together with it had been almost worthless, anyway. The latest threats, some twelvemonth ago, were likely used past times this Slovak guy to purchase 1% of Moneta alongside a 10% discount. He no longer has the motivation to impairment the bank, I think.

VIG, 8% of the index

The 2d Austrian fiscal particular inward Prague. It owns numerous key insurance companies inward the Czech marketplace – together with some others inward the post-communist Europe. But the Czech marketplace is the most of import one, I guess. The electrical current cost is CZK 605, the dividend was CZK 24. Three years ago, the stock cost twice every bit much (and I lost a lot when it was falling, fifty-fifty though I exclusively held it intermittently, inward the search of the bottom) – but nix has genuinely changed. I exercise recollect this stock is undervalued, too.

Avast, 6% of the index

Czech Republic is the world's antivirus superpower. Avast is i of the large producers afterwards it merged alongside AVG. There were 2 Czechoslovak founders of Avast during the slow communism. At to the lowest degree i of them is a dollar billionaire afterwards he introduced the stock inward London. The electrical current cost is CZK 64. The stock was freshly added to the Prague index. There may withal hold upward some growth of the stock if novel indices are added together with people copying them direct maintain to purchase the stock.

O2, 6%

O2 is i of the 3 largest telecommunications providers, peradventure the largest i – i that genuinely evolved from the monopoly-owning communist telephone company. Czech Republic has somewhat to a greater extent than expensive Internet together with telephone services but nosotros direct maintain the best covered territory inward Europe. Look at this stunning map of Europe showing the availability of the 4G mobile information signal. Czech Republic is the ultimate light-green paradise. France, Poland, Italy, together with others genuinely facial expression similar deserts inward comparison. Even Federal Republic of Federal Republic of Germany is visibly less light-green than Czechia.

O2 was or is co-owned past times Petr Kellner, the richest Czech homo who mostly owns some fiscal companies (also inward Russia). In recent years, the value of the companionship went upward dramatically (especially if you lot realize that the master copy O2 stock split inward two, the other i is called CETIN). The latest dividend was CZK 21 earlier tax, the electrical current stock cost is CZK 255 afterwards dividends.

Stock Spirits, 3%

Influenza A virus subtype H5N1 producer of strong alcoholic beverages located i mile from my home. Fernet, Domestic Rum, lots of Czechs' favorite titles. Some people could recollect that Pilsen is some sort of alcoholics' metropolis because nosotros depend on beer. But that's non truthful at all, we're also a key source of rum together with similar things ;-)

But no, we're genuinely non simply most beer together with rums. Another companionship nigh Pilsen, Bohemia Sekt, is the elevation Czech producer of sparkling wines.

Stock Spirits stock costs CZK 68 now, the latest dividend was CZK 1.45 (well, over CZK 2 alongside some dividend-like extra payments).

Philip Morris CZ, 2.5%

Cigarettes, smoking, this occupation concern continues simply similar decades ago. The boss of the companionship claims that at that spot volition hold upward a transformation towards e-cigarettes etc. (cigarettes sent past times e-mail, I guess), but I recollect that they're doing the skillful former occupation concern most of the time.

The stock costs CZK 15250. It was already nigh CZK 18000. Not surprising because the latest dividend was a whopping CZK 1080. Recently, the stock dropped past times some 10% on elevation of the ex-dividend drop. I exercise recollect it could hold upward a buying opportunity.

Unipetrol, 2.2%

Influenza A virus subtype H5N1 petrochemical companionship operating nigh the East High German borders. The electrical current bulk possessor is PKN Orlen, a larger Polish companionship of the same kind. I held some of it during 1/2 of its dramatic increase from CZK 140 or so. The electrical current cost is CZK 375 together with looks overpriced to me but I could hold upward wrong. I was already proverb the same affair when it was CZK 300.

They had huge profits but decided non to pay dividends for 2017. There were dividends for the previous 2 years, together with a desert for a decade earlier that.

CETV, 2.1%

The media companionship that owns TV stations inward post-communist Europe, starting alongside the flagship, Czechia's TV NOVA, the showtime large commercial TV station inward post-communist Europe (well, all such companies run many channels these days). The electrical current cost is CZK 90, it was higher upward 100 but also below lx inward recent years. Time Warner owns much of it. Ronald Lauder has sold it, I guess. The station wouldn't hold upward what it became without its Czech founder, Mr Vladimír Železný, but that's a long fourth dimension ago. There is a potential for a takeover that could encounter the cost popular off up. They haven't paid dividends for a decade, I guess.

Pegas Nonwovens, 0.5%

Influenza A virus subtype H5N1 Moravian companionship making some clothe or similar materials for industries which are non woven, I guess. They are opening a flora inward South Africa, too. The trading volumes seem rather small. I owned it at the correct fourth dimension (catching 2 waves from CZK 800 to 900). The electrical current cost is CZK 900. The latest dividend was EUR 1.30 per stock earlier taxes, over CZK 30.

Kofola Czechoslovakia, 0.2%

The Czechoslovak rival to Coke which tastes nix similar Coke. Some people abhor it, others honey it. Some inquiry institute during the communist fourth dimension got a trouble to detect out what to exercise alongside some byproducts of the production of java together with they institute the fascinating solution. After the communism fell, a Greek-in-Czechia named Samaras revived it every bit a capitalist occupation concern together with it popular off successful. The companionship airs lots of advertisements inward the retro trend (resembling the advanced communism), sometimes alongside nude boys who honey some girls. The people who were kids during the slow communism, similar me, are hopefully education their kids to imbibe Kofola.

In Poland, its sales suck which is why they facial expression at it inward a gloomy way. Influenza A virus subtype H5N1 stockholder from Poland sold its 8% stake recently. It withal has 12%. They crashed the cost from CZK 380 to CZK 270 – where they sold those 8%. The cost chop-chop recovered to 308 every bit of now. There's a large potential for the growth dorsum to CZK 440 where the Samaras household unit of measurement was buying dorsum those stocks (they took a loan for that) some twelvemonth or 2 agone (and lots of recommendations there).

I owned a sizeable amount. The stock is spoiled past times rattling small-scale trading volumes. After the Polish stupor cost drop, the volumes spiked but they are depression again. But the stock is also undervalued for that. The latest dividend was CZK 16.20, over 5% of the electrical current stock price. Similar fiscal criteria facial expression much to a greater extent than attractive than for other nutrient companies.

The Czech currency weakened past times a few percent inward recent weeks. It's rather probable that it volition saltation on the strengthening tendency i time to a greater extent than therefore you lot may exercise goodness from that (on elevation of the expected increasing stock prices inward CZK), too.