A
Strategy for a ‘Top Tier’ Capital Market?
Disappointingly, publication of the World
Bank’s detailed assessment of the Czech Capital Market has been greeted with
deafening silence. The timing of the report’s publication[i],
last September, just ahead of the general elections and more recent
Presidential elections, undoubtedly didn’t help attract attention. That only
the main recommendations, rather than the body of the report, were translated
into Czech language probably didn’t help either. That is a pity because the
World Bank’s report, which utilised input from market participants, provides
not only a comprehensive overview of the Czech capital market but also gives
numerous insights and constructive suggestions. In particular, how a ‘top tier’
capital market can be developed.
Research ‘Coverage’
Halves
A study by AKRO
investiční společnost, a.s., a Prague based investment firm, shows that since the
end of the financial crisis there has been a steep decline in the number of
investment banks publishing up-to-date forecasts for companies on the Prague
Stock Exchange.
Using Bloomberg Data,
the analysis studied the level of research ‘coverage’ for companies included in
the Prague Stock Exchange (PX) Index. The term research ‘coverage’ refers to
the number analysts’ published financial forecasts for a given listed company. These
forecasts are provided mainly by investment banks but occasionally also by
independent research firms. For consistency, only forecasts included in the
Bloomberg ‘consensus’ were included, thereby ensuring out-of-date forecasts
were excluded.
By Jeremy Monk, AKRO investiční společnost, a.s.
The plethora
of investment indices continues to grow. Whatever the asset class, there is an
index to accommodate it, whether its stocks, bonds, commodities, property, art,
fine wine, etc.
But what
about an index that tracks the market value of a basket of historic bond and
share certificates? A group of scripophily experts joined forces recently to
develop one. The traded securities don’t have any “intrinsic” value, they
are just financial esoterica that, for various reasons, have significant
historical or decorative value.
The Historic Stocks Market (HSTM) Index tracks the auction prices of 100 “representative” share and bond
certificates and is updated every six months to incorporate the latest realized
sale values. Since its inception in late 2012, the index has risen by
approximately 25%.
Pohyby na trzích aktiv jsou běžným jevem.
Investoři mají v zásadě na výběr mezi vyššími očekávanými výnosy a nižším
rizikem. Preference výnosnosti je spojena s vyšší rizikovostí investičních
instrumentů, a naopak, rizikově averzní investoři by měli očekávat nižší
výnosnost. Obecně jsou za riziková aktiva považovány především akcie. Oproti
tomu, za „bezpečný přístav“ bývají považovány drahé kovy, a to jak
z pohledu rizika, tak výnosnosti. Následující analýza prokazuje, že to může
být omyl.
Zaměřujeme se na srovnání investic do zlata
a stříbra, a cenných papírů v podobě akcií – v tomto případě využijeme
jeden z akciových indexů, Dow Jones Industrial Average, DJIA. Údaje
z americké ekonomiky lze, vzhledem k vyspělosti akciového trhu,
považovat za reprezentativní. Začátek analyzovaného období (4. Q 2005) je
spojen s předkrizovým stavem amerických (a dalších) trhů.
Would
You Care to Dance?
Prague is that shy girl sitting in the
corner. She doesn’t realise she’s the prettiest girl in the room. As Paris,
Frankfurt and Madrid strut their stuff and even Dublin, Warsaw and tiny
Luxemburg show their moves; Prague has thus far refused to dance. The other
European cities are, of course, all dancing the Brexit fandango: Seductively putting
forward their credentials as a safe harbour for firms, especially professional
service firms, relocating activities from London in response to Britain’s
decision to leave the European Union (EU).
But what of Prague? Prague has so far been
noticeably absent in putting itself forward as a destination. That is a
mistake. It is the author’s opinion, and an opinion shared by many fellow
Brits, that Prague has a lot to offer. The Czech government, CzechInvest and
the City of Prague, shouldn’t be shy in outlining the case for relocation to
the Czech Republic.