Updated: Feb 24
By: The Quinnipiac University Economics Research Team, Jack French
Source: Own calculations based on data collected from each index.
The Central European stock indices exhibited a broad range of behavior during the past week. Slovakia stands out instantly as the SAX jumped two and a half percent during Tuesday’s trading before coming down a bit on Wednesday. This spike is especially notable because of Slovakia’s recent period of relatively little movement and because the jump was not shared by any other index. The SAX was the only index to be positive through the first two days of the week.
Continuing its recent run of poor weekly returns, the Polish WIG 20 dropped considerably. Down almost two and a half percent, the WIG 20 fell over a percent more than any other index. The four other Central European indices were up along with the S&P 500. Joining the WIG as the only indices down on the week, the UK FTSE fell considerably early in the week before making up some ground on Friday to finish down just over half a percent.
The Hungarian BUX had a very strong mid-week performance which left the index up about two percent for the week. The Czech PX and Romanian BET followed the S&P 500 pretty closely and all three booked gains of just right around a percent for the week.
Source: Own calculations based on data collected from each index. The first graph shows the previous week’s performance. The remaining graphs show the three-month performance of each of the indices.
Surpassing all indices with a gain of about two percent, the Hungarian BUX had a very strong week after losing a percent and a half the previous week. After being down almost two percent during the last week in November, the Polish WIG 20 continued its sharp downward trend that began in early November and has seen the WIG lose about ten percent of its value. The FTSE underperformed the S&P while somewhat mirroring its fluctuations around the trend which has been a somewhat common occurrence.
The three month return for the SAX has turned slightly positive meaning the WIG 20 and the FTSE are now the only two indices with negative three month returns. The BUX, PX, BET, and S&P have had very strong returns since about October 5th. The BUX, BET, and PX continue to look very similar to the S&P while the WIG 20 and SAX are exhibiting less consistent upward movement and thus look much more like the FTSE. The lack of a clear upwards trend in the SAX and WIG 20 is concerning for a major stock index over the long term but is somewhat similar to the FTSE over the current three month period.