Page 73 - CE Outlook Regions 2022

The PSE’s main index – the PX – appreciated by 43.2% from
January to December 2021. In CZK terms, this is the tenth best
overall performance (i.e. after including dividends) among all primary
stock market indices globally. In the EU, this is the second best
performance, following the Estonian stock exchange, which reported
a performance only slightly higher at 43.7%.

As mentioned, bank stocks are doing well because of the CNB
interest rate policy as higher interest rates allow banks to achieve
higher spreads between the interest rates on their loans and the
interest rates on deposits received, i.e. higher interest income.
These are then reflected in increased profitability, which also means
higher returns for bank shareholders.

The PSE has set the dates for the so-called START Days for 2022
when existing issuers of the START market will present current
information relating primarily to the issuer's performance and the
development of its business activities. The Spring START Day will
take place on May 3, 2022 and the Autumn START Day on October
4, 2022.

Activity on the mortgage and property markets has had an upward
tendency since the 2H20. The CNB Bank Board thus decided to
respond to the growth in systemic risks associated with mortgage
lending and housing market developments using its new statutory
powers. The new rules will take effect on April 1, 2022.

By the CNB’s estimation, the potential effect of the measures on the
volume of new loans will not exceed one-tenth of the amount of
loans that would hypothetically be provided if they did not exist. This
effect will be offset by a more conservative risk profile of new
mortgage loans.

73 CE Outlook 2022 www.intellinews.com