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Babiš's statements about taxation of banks bounced significantly through the Prague Stock Exchange



The Prague Stock Exchange was driven down by the financial sector. Investors sold out their shares because they feared the possible introduction of a sector tax for banks, insurance companies and mobile operators, which was discussed on Sunday by Prime Minister Andrej Babiš in Czech Television in Questions of Vaclav Moravec.

But on Monday afternoon Babis took his claim back and announced that he did not count on the tax. Loss titles have since started to correct their fluctuation. In spite of that, the Prague index weakened significantly. He wrote off 1.95 percent at 1,070.23 points.

High due to this was the activity of shops. Their total volume exceeded CZK 1.2 billion, which is more than twice the average. This stems from the stock market data.

Everything out! Everything here!

Czech Television said on Sunday that Babis changed the view of the sector tax and is willing to discuss it with the coalition CSSD. But on Monday afternoon the Prime Minister said to the People's newspaper that his statement was distorted and he did not want to introduce the tax. The market then turned around and erased most of today's losses.

Moneta Money Bank hit the worst today, down 7.66 percent to CZK 72.95. "But this was mainly due to the fact that today the shares were traded for the first time without a dividend claim," said Komerční banka analyst Miroslav Frayer. Komerční banka's securities decreased by 4.06 percent to CZK 863.50. Erste Bank went down by 0.99 percent to CZK 923.80 and VIG insured 0.24 percent to CZK 627.50.

The sectoral tax should also apply to insurance companies and operators

The speculation about the introduction of the tax is also behind the decline in O2 operator shares, which closed at 1.79 percent to CZK 247.50. "With the market downturn, CEZ also dropped (-1.03%) and this time there was no need for an increased volume of trading," said Fio banka broker David Brzek.

Today, only two of the main titles ended up on the Prague market. Avast technology company strengthened by 1.12 percent to CZK 90.50 and media CME by 0.11 percent to CZK 92.10.


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