Koruna Edges Higher, CEZ Shares Keep PX Index Afloat

EUR/CZK changes hands -0.019 at CZK23.770 at the start to the new week. For bears, the initial target is provided by CZK23.510, which limited losses on Jun 6. On the flip side, bulls look to a rebound above Mar 17 high of CZK24.137.

• The PX Index (+0.1%) remains afloat, owing to decent gains for majority state-owned energy utility CEZ (+2.7%). The utility has drawn support from Czechia's decision to raise this year's dividend payout to CZK145/share from the utility's earlier record-breaking proposal of CZK117/share. The decision could be linked to the government's efforts to plug holes in public finances as budget deficit is already approaching its full-year target. Other CE3 equity benchmarks, Poland's WIG20 and Hungary's BUX, trade on the back foot as we type.
• The key thing to watch in Czechia this week is Wednesday's rate decision from the CNB. The Bank Board are widely expected to keep interest rates unchanged as the case for renewed tightening has weakened.