CEE Stock Market Report for September 21 – October 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.

Slovakia’s SAX fell back below its pre-outbreak level after jumping above it a few weeks ago. As a result, the S&P now has retaken its spot above the CEE and UK indices. Romania’s BET index is the second highest CEE index and has exhibited the best recovery from late March to now. In stark contrast, the Hungarian BUX has really fallen off since June and is again around where it was in late April. Interestingly, the Polish WIG 20, Czech PX, and UK FTSE continue to be bunched very closely together.

The US ticked up over the last two weeks after declining sharply for about three weeks. This was really the only significant move with the bulk of the indices seemingly continuing their trends. The S&P is now slightly less than one percent below where it was in February. The SAX is slightly less than two percent down. The CEE markets overall are down about 17%. With the outlier Slovakia excluded, they’re down nearly 20% during the pandemic period.

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

All CEE stock markets as well as the UK FTSE were down over the last two weeks. On the low end, the Slovakian SAX dropped almost six percent while the Hungarian BUX had the smallest decline, just a fraction of a percent. The UK FTSE, Czech PX, Polish WIG 20, and Romanian BUX all lost just about two percent. The US S&P 500 turned in a modest gain of slightly less than one percent. The news of the President of the United States testing positive for Covid-19 rocked markets on Friday and, as the situation progresses, has the potential to really hurt stocks in the US and elsewhere over the coming days. Furthermore, the event has reaffirmed the idea that no one is safe from the virus and the risk is still very real to both markets and individuals.

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.


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