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Lidovky.cz

PX Index base rules to change

  15:51

New rules for calculating the Prague bourse’s blue chip PX index should have no impact on trading, analysts say

Komerční banka quickly denied ProMoPro's allegation that the bank had leaked personal financial information foto: © Česká PoziceČeská pozice

The base of the PX Index on the Prague Stock Exchange (PSE) will be changed as of March 21, 2011. The maximum weight of a stock in the index will be reduced from 25 percent to 20 percent. This will mean a reduction in the weights of energy group ČEZ and financial holding Erste Group Bank.

The weights of three stocks will rise: Komerční banka will go up to 20 percent, telecom stock Telefónica 02 Czech Republic (TOCR) will go up to 16.7 percent and coal miner New World Resources (NWR) will rise to 9.59 percent.

“Since investors seldom follow the weights in the PX Index to adjust investments in their portfolios, the change should not have a major impact on trading,” Pavel Ryska, an analyst at brokerage Atlanitk finanční trhy, said in an e-mail. ‘Since investors seldom follow the weights in the PX Index to adjust investments in their portfolios, the change should not have a major impact on trading.’

In total, 15 stocks currently meet the trading requirements to be represented in the index. Czech state-controlled power utility ČEZ, Erste Group Bank and Komerční banka lead the index, while the lowest weightings going to used car dealer AAA Auto, technology firm Kit Digital and real estate firm Orco Property Group, each with less than half of one percent.

The weighting is changed periodically based on stock values and trading on a decisive day. The valuations taking effect March 21 are based on Feb. 28 trading figures.

The PX Index grew out of the PX 50, which began April 4, 1994. It was set at a value of 1,000 points and originally included 50 stocks. It fell to a low of 320 points on Sept 17, 2001, following trends on markets worldwide after the Sept. 11, 2001, terrorist attacks in New York. On March 20, 2006, the PX 50 and PX-D merged to create the PX Index. It is a price index, and dividend yields are not considered in its calculation, according to the PSE.

FOR KIDS by měl být zážitkem pro celou rodinu, říká Monika
FOR KIDS by měl být zážitkem pro celou rodinu, říká Monika

Monika Pavlíčková (35 let) je maminkou dvou dcer, sedmileté Terezy a čtyřleté Laury, a zároveň také manažerkou obchodního týmu společnosti ABF,...