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Czech Equities, CEE 'Safe Haven'?

CEE
  • While the geopolitical uncertainty in Russia and the on-going dispute with the EU block have been weighing on Hungary and Poland equities in recent weeks, Czech equities have experienced a much lower volatility with PX index constantly reaching new highs.
  • This chart shows the strong divergence between Czech equities and Hungary/Poland equities since the beginning of November 2021.
  • The PX Index is currently trading at a 7.6 points 'premium' relative while BUX index and WIG20 Index are currently trading at a 8-point and 11-point 'discount' relative to early November.

Source: Bloomberg/MNI

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