Evaluation of selected capital market

Abstract

Research background: Stock exchange trading is an activity carried out in order to achieve a profit. The oldest and largest market operator in the CR is the Prague Stock Exchange. The complex development of the market in a given period with regard to its development trends is monitored by means of the stock market index. The index of the Prague Stock Exchange is PX index. Purpose of the article: The objective of the contribution is the evaluation of the development of the PX index in the years 2018-2020 and the prediction of its further development. Methods: The data on the PX index were obtained from the official Prague Stock Exchange websites. The data are available for the period of 26 March 2018-31 March 2021. The processed data are analysed using neural networks, specifically the time series analysis. The opening price is used as a variable. Findings & Value added: The research results show that the Czech market index has been relatively stable in the past, its values being around its initial value, 1,000 points. No major fluctuations were recorded, as the PX index included very stable firms. However, with the onset of the COVID-19 pandemic, there was a sharp decline caused by the effect of anti-pandemic measures on the economy. Currently, the Czech market index is expected to grow gradually and stabilize at around 1,000 points.