CEE Stock Market Report for March 22 – April 2

By: The Quinnipiac University Economics Research Team, Jack French

Source: Own calculations based on data collected from each index. This graph shows the performance of each index with the reference date of February 17th.

The rally continued for the Romanian BET over the last two weeks. The index is now more than ten percent above where it was before the pandemic period began, a far better performance than the other CEE countries. The S&P is up nearly 20% over the same period. The SAX did not fall as far as the other indices initially and now sits a couple of percent above its pre outbreak level. The Czech PX is very close to where it was, and the Hungarian BUX is only a couple percent behind the PX. The Polish WIG 20 has split from the pack in a big way so far this year. It’s down a few percent year to date while the other indices are all positive. The UK FTSE had only a very modest gain but still outperformed the WIG during 2021. For most countries, much of the gain of the last three months came in the first few weeks of the year. There have been a lot of ups and downs since then, and several of the indices are now at or near their all-time highs. The BET has performed very strongly year to date, even beating the S&P. A key difference between the BET and the rest of the region has been performance over the last month or so. The BET trended up while most other indices were relatively flat.

Source: Own calculations based on data collected from each index.

The last two weeks saw mostly modest growth for the Central and Eastern European stock markets. The Slovakian SAX’s two percent decline made it the only index in the region to fall over the last two weeks. The Hungarian BUX rose slightly. The Czech PX gained about 1%, and the WIG 20 rose just over 1%.The Romanian BET led the group at about 4% up. The UK FTSE had a very modest gain, and the US S&P climbed a bit less than 3%. The S&P and BET rose pretty steadily throughout the two weeks. The WIG was much more up and down but rallied around the end of the first week to book a solid gain. The PX, BUX, and FTSE were pretty flat the whole time. The SAX dropped and then was closed for several days in a row. Most of the markets were closed on Friday.

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.