Prague stocks suffer worst week in six months as banks lead selloff

The Prague Stock Exchange suffered its steepest weekly decline in about six months as losses in banks, defense companies, and smaller technology stocks pushed the main PX index down 3.86 percent.

The index closed Friday at 2,616.27 points, extending its losing streak to eight consecutive trading sessions. The weekly decline was the largest since Feb. 13 and followed an essentially flat performance during the previous week.

The trading week was shortened by Monday’s Czech Statehood Day holiday. The PX declined during each of the four remaining sessions, while investor activity remained subdued.

Financial stocks, which account for a large share of the PX index, were among the week’s weakest performers.

Erste Group Bank fell 7.04 percent, erasing its 3.65-percent gain from the previous week. Moneta Money Bank lost 4.56 percent, while insurer Vienna Insurance Group declined 4.49 percent. Komerční banka fell 2.54 percent, marking its fourth consecutive losing week along with VIG.

Defense company CSG dropped 6.84 percent after losing 4.33 percent the week before. The shares declined despite the company announcing a contract to supply howitzers to Latvia. Colt CZ Group also weakened, falling 3.25 percent over the week.

Smaller listed companies posted substantial declines as well. Solar-energy company Photon Energy fell 5.88 percent, drone manufacturer Primoco UAV lost 4.92 percent, and Doosan Škoda Power declined 3.03 percent.

Philip Morris ČR shed 2.92 percent, while metallurgy company Gevorkyan slipped 1.37 percent to CZK 180.

ČEZ proved comparatively resilient, declining 0.74 percent. It nevertheless marked a third consecutive week of losses for the energy group.

Kofola was the only major Prague-listed company to finish the week higher. The beverage maker rose 1.18 percent and did not record a decline during any session.

The PX lost another 0.59 percent Friday as Erste shares fell 2.8 percent to CZK 2,775.

Moneta declined 1.13 percent to CZK 184, while Komerční banka slipped 0.79 percent to CZK 999. ČEZ edged 0.3 percent lower to CZK 1,339.

VIG provided one of the few bright spots, rising 2.21 percent to CZK 1,616. Colt, Kofola, and Philip Morris also recorded modest daily gains.

Friday trading volume reached approximately CZK 510 million, below the long-term average. Turnover for the entire week was around 75 percent of its usual level, according to market analysts.

Prague’s decline Friday contrasted with a recovery in broader European shares as weaker U.S. employment data reduced expectations of an immediate Federal Reserve rate increase.

The Czech koruna recovered part of its Thursday losses at the end of the week. It strengthened by CZK 0.05 to CZK 24.44 per euro and by CZK 0.07 to CZK 21.68 per U.S. dollar.

The Prague Stock Exchange’s official PX index page confirmed Friday’s close of 2,616.27 points.