Sunday May 22, 2022

The shares of Volkswagen and Erste clearly led

How did you miss the most important titles on RM-SYSTM and which of them reached the biggest extreme, and therefore sweat, or on the contrary disappointed the ranks of investors?

Positive and negative information was involved in the development of the market. In mid-term, the markets experienced strong turbulence again after the well-known US bank Bear Stearns reported major financial problems and its shares fell by 95 percent in a short time.

This decline dragged down the entire American and, consequently, European market. The milestone was reduced by the base years of US rates by 75 points to 2.25%.

Shares of Erste Bank strengthen

Among Czech blue-chips shares, Erste Bank shares strengthened the most. The growth impulse was information on the sale of Erste Bank’s connection activities to VIG for EUR 1.445 billion (EUR 4.5 per share). The part of the transaction is an agreement on cooperation in the mutual sale of the product, concluded for 15 years.

For Erste Bank, this means an interesting opportunity to offer its products to current VIG clients. The market reaction was very impressive and within two days Erste shares strengthened by more than 11%. Investors evaluated the sale very positively also because the connection activity does not make large profits to the bank in the long run and the sale significantly improves the capital adequacy of the company, which is a key asset for many institutional investors and in Erste Bank was one of the few indicators behind the low share price. At the end of the month, the course was supported by a jet recommended for purchase from Goldman Sachs with a new customs price of 47.41 euros. Especially the price itself was an interesting fact that after a long time it is a glue recommended. At present, the Erste Bank exchange rate is around 1,093 K.

Volkswagen shares topped Porsche

During the current period, the shares of Volkswagen, which announced the results of the economy, also strengthened strongly. The largest European carmaker increased its net profit by 50% to 4.12 billion euros (103 billion K) last year, operating profit increased by 40% to 6.15 billion euros (154 billion K) with sales of 108.9 billion (K 2,726 billion). The immediate market reaction was slightly negative.

The share price grew intensively due to speculation about the additional Porsche share in Volkswagen, so that its share in the voting first exceeded 75%. Volkswagen is one of the largest companies on the Czech capital market traded on the RM-SYSTM market with a market capitalization of 1.37 trillion crowns at the current exchange rate of 4,724 K.

Shares Pegas ztrc 18%

The trade with the title Pegasus, the second largest European producer of nonwovens, was very volatile. Shares for running lost 18% of their value.

For a volatile trading mood on the capital market and thus announced the financial results for the past year, which were at the level of the market. With revenues of 122 million euros, the company generated a profit of 22.1 million euros (+ 9.2% y / y).


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