Czech equities, as measured by the PX Index, were off by 0.5% for the week, to close at 1,854.9. The overall volume of trading on the PSE reached USD 853.2m, 0.9% above its 12M weekly average of USD 845.4m.
CEZ was the most actively traded listing during the past week with more than 50% of the total volume. Even though Merrill Lynch increased its target price for the stock, the shares were off by 0.4%. Unipetrol was the star of the week reaching an all-time-high for the price of its shares - it gained more than 4%. Real estate developer ECM was up by almost 1%, supported by an analyst's recommendation upgrade to Buy from Hold also by a positively received conference call. In the opposite direction moved Orco, which lost 4.1% despite a broker having lifted its target price for the shares. Komercni Banka improved its record levels during the past week and moved up by 0.5%. Erste Bank went in the opposite direction, losing 1.5%. CME was under pressure as six new digital TV stations are expected to start broadcasting next spring.
This week starts the reporting season for the Czech blue chips. Telefonica O2 CR will be reporting its 2Q07 results on Thursday, July 26. We expect to see net income reaching CZK 2.4bn. The Czech National Bank should also decide about interest rates on Thursday. We are looking to see a hike in the base rate of 25bps.