The central bank of the Czech Republic recently increased investments in many U.S.-traded stocks.
The Czech National Bank added about 50% to investments in
Apple
stock (ticker: AAPL),
Tesla
stock (TSLA),
AT&T
stock (T), and
Microsoft
stock (MSFT) in the third quarter. The bank disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
The bank declined to comment on the investment changes. It managed $6.28 billion of U.S.-traded securities as of Sept. 30, up from $4.40 billion as of June 30.
The Czech National Bank bought 818,501 more Apple shares to end the third quarter with 2.6 million shares of the iPhone maker.
Apple stock rose 32% in the first nine months of 2023, almost wiping out a 27% drop in 2022. So far in the fourth quarter, shares are down 1.7%. For comparison, the
S&P 500
rose 12% in the first nine months of 2023, after a 19% drop in 2022. So far in the fourth quarter, the index is down 4.0%.
Soft demand for iPhones has drawn concern from Wall Street in recent weeks. Some analysts are also calling for the company to catch up with rivals in artificial intelligence. Apple set an Oct. 30 event that we think will launch updated Mac models. The company will report fiscal-fourth-quarter earnings after the market close Nov. 2.
Tesla’s third-quarter earnings, reported earlier this month, were disappointing, as price cuts ate into the bottom line. The company disclosed in a regulatory form that it was facing probes by the Justice Department related to self-driving features, management benefits, vehicle range, and personnel decisions. Meanwhile, Tesla continues to convert other auto makers to use its plug standard for charging.
The Czech National Bank bought 163,682 more Tesla shares in the third quarter to lift its investment to 482,573 shares. Tesla stock rocketed 103% in the first nine months of the year, following a 65% plunge in 2022. So far in the fourth quarter, shares are down 17%.
The bank bought 403,368 more AT&T shares to end the third quarter with 1.2 million shares. AT&T stock fell 18% in the first three quarters of 2023, after a 1% slip in 2022. So far in the fourth quarter, shares are up 1.3%.
AT&T stock slid to a multidecade low in the summer after a report in The Wall Street Journal examined the toxicity of its legacy lead telephone cables. CEO John Stankey said the cables don’t represent “a public health crisis,” and the company continues to work with regulators. AT&T reported a strong third quarter earlier this month, and lifted the free-cash-flow forecast.
Microsoft posted a strong fiscal first quarter in the past week, including a better-than-expected performance in cloud computing. Arguably a bigger October highlight for Microsoft was that it closed its long-awaited acquisition of videogame publisher Activision Blizzard.
The Czech National Bank bought 418,433 more Microsoft shares to end the third quarter with 1.3 million shares. Microsoft stock rose 32% in the first nine months of 2023, following a 29% drop in 2022. So far in the fourth quarter, shares are up 4.4%.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
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