In a dramatic turnaround, the Prague Stock Exchange has surged above the 2000-point threshold, marking a significant recovery after last week’s downturn. The rally was triggered by U.S. President Donald Trump’s unexpected announcement on tariff postponement, pushing the PX index up by an impressive 3.54% to close at 2002.83 points.
Banking stocks led the charge, with Erste Bank emerging as the day’s most actively traded stock, soaring 5.45% to 1,461 Czech crowns. Other financial institutions followed suit, with Komercni Banka climbing 5.08% and Moneta Money Bank gaining 4.73%.
The industrial sector also showed remarkable strength, as Doosan Skoda Power, the Pilsen-based engineering firm, recorded a 5.09% increase. Energy giant CEZ and arms manufacturer Colt CZ contributed to the broader market gains with increases of 1.77% and 2.07% respectively.
This recovery comes as a welcome relief following last week’s tumultuous trading, which saw the steepest decline since the COVID-19 pandemic began five years ago, with the index plummeting nearly 8%.
The positive market sentiment extended to the Czech currency, with the crown strengthening against both major global currencies. It gained 22 hellers against the dollar and 6 hellers against the euro, trading at 22.54 CZK/USD and 25.10 CZK/EUR respectively.