The market closed roughly 1% lower when, in last 30 minutes, it moved in-line with the US markets, which went down, and some sell orders appeared on the PSE. The volume traded was less than the averages. Otherwise, the market was trading in-line with those in the rest of the region for the whole day. Most actively traded CEZ moved above the CZK 1,085 level for a time, but did not hold this level, due to low volatility and sell orders at the end of the session. Zentiva reported its 2Q07 results, which came in slightly better than indicated in its recent profit warning. The company expects to see a better performance in the second half of the year. Zentiva was the only listing closing in positive territory. Erste Bank was one of the main losers pushing the PX Index down in-line with trading in Vienna. Patria/KBC upgraded its recommendation to Hold from Sell. Komercni banka also closed lower and followed along with the general performance seen in the other shares in the banking sector.
The market is set to see a bounce Tuesday morning as the US markets jumped overnight. All stocks are set to probably open up although volumes are expected to dry up as many investors will be waiting for the FOMC decision. Philip Morris should come under pressure due to news that the communist party is proposing higher taxes on cigarettes. CEZ should get support from its continuing share buy-back program.