Bloomberg reports that “some euro-region members now pay more to borrow than emerging markets such as Poland and the Czech Republic. The spread between a Czech 10-year sovereign note and the German bund was 78 basis points, less than Italy, Spain, Greece, Portugal, Belgium and Ireland.”  The Czech Republic is rated A at S&P, and Poland A-. Prices now reflect odds of between 10 percent and 20 percent that the euro-region will disintegrate following a series of credit downgrades from Standard & Poor’s this month, according to BlackRock. The difference in yields, or spreads, between [Greece, Spain and Italy's] 10-year bonds and those of benchmark German securities was close to the widest today since the euro’s debut in 1999.

The Czech central bank slashed its benchmark interest rate more than expected this morning as a growing credit crunch slows down borrowing and a decline in external demand hits exports and industrial output. Manufacturing output in the Czech Republic contracted for the seventh month in a row in October, and the purchasing managers index (PMI) hit an all-time low of 41.2, just above the revised euro zone figure of 41.1, giving us some idea of just how interconnected Czech and Eurozone activity are. Sharp Rate Reduction The Prague-based Ceska Narodni Banka reduced the two-week repurchase rate by three-quarters of a percentage point to 2.75 percent, its lowest level since June 2007. The size of the cut is the largest since at least 2004. The koruna fell to 24.953 per euro immediately after the decision, and this was its lowest level since Oct. 27. It was trading ...

With the Russian invasion of Georgia, attention has been focused on Eastern Europe and any investment opportunities or bargains there. The Czech Republic is one of the larger countries in that part of the world. Here are some interesting facts about the country: 1. It is a pluralist multi-party parliamentary representative democracy. 2. They have a flat tax. 3. Their annual GDP growth has recently been approximately 6%. 4. It has the highest ranking compared to the former Comecon countries in the Human Development Index. 5. It ranks 35th out of all countries for GDP based on purchasing power parity. 6. Most of the country's economy has been privatized. 7. It has has abolished border controls with all of its neighbors. 8. The Programme for International Student Assessment ranks the Czech education as the 15th best out of all countries. 9. 4.6% of their electricity comes from renewable sources, including hydropower. 10. They ...

Shares of the last and the biggest IPO in Czech history New World Resources has risen by 45% since share issue in less than 2 months. Buying power in last week came from growing commodities prices and also due to possible approval for mining in the pit Debiensko in Poland.

On 23rd of June NWR is part of index PX with weight 11%. Together with energy giant CEZ (25% weight of PX) they make up more than the third of index PX. More or less the same share is for banks (37%) represented by Erste Bank and Komercni Banka.

From now on it is obvious that the performance of Czech stock market index PX will be determined by commodities prices more than it used to be.

Related tickers: (IEER.L), (GUR), (CEE),
http://stockweb.blogspot.com/atom.xml