Overview of the latest economic events in the Czech Republic

The Prague Stock Exchange ended the session with a slight growth; the PX index added 0.17 % and the main titles as MONETA Money Bank, Komerční banka a ČEZ showed alternating movements in trading volumes. Moneta Money Bank was one of the most active titles, Komerční banka was around CZK 1,038 per share and ČEZ slightly increased. This short-term stabilisation reflects a combination of domestic performance and the external impulses that affected the markets today.

Foreign investment

In the last 48 hours, companies from various sectors reported a number of transactions and acquisitions that will affect Czech supply chains. Advanced Drainage Systems (ADS) announced the acquisition of the division National Diversified Sales od německé NORMA Group around USD 1 billion in the transaction, which has an impact on the water solutions segment and component suppliers in the EU.

Podobně Harman (divize Samsung) completed the takeover of the company's audio business Masimo, which will strengthen its position in the automotive and consumer audio worlds. International consolidation continues in the healthcare and technology sectors: Alvogen announced the sale of the group Lotus, Privia Health has agreed to acquire the ACO business from Evolent and technology companies such as Cyberbit a ROLLER also announce purchases (RangeForce; BookNow). These moves signal an influx of capital into specific industries that can generate contracts for Czech subcontractors.

Significant events outside the Czech Republic with global impact

European automotive sector faces a crowded market: group Stellantis announced a temporary suspension of production at selected factories in France and Italy due to weak demand, which may affect European supply networks and component orders from Central Europe.

Naopak JATO Dynamics reports a sharp increase in sales of Chinese car brands in Europe - +121 % year-on-year in August, market share 5.5 %, Chinese manufacturers have overtaken some European brands - a trend that is changing the competitive landscape for European and Czech car parts manufacturers.

The price of gold continues to rise sharply on the financial markets: the spot price approached levels of around USD 3,780 per troy ounce (approximately CZK 78,088/oz) on 23 September, with pressure coming from expectations of rate changes in the US and increased demand for safe-haven assets. This has an impact on corporate financing and investor behaviour on the Prague Stock Exchange.

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