Czech equities, as measured by the PX Index, were off by 1.2% for the week, to close at 1,750.6. The overall volume of trading on the PSE reached USD 1,046.2m, 20% above its 12M weekly average of USD 872.0m.
The negative sentiment pervading the market was related to the influence of the problems in the US mortgage sector. The best performing stock during the past week was (1 857 CZK, 0,70%), which gained 3.4%. On the other hand, the worst stock was (9 200 CZK, -0,81%), which closed week down by 8.2%. (1 230 CZK, 0,99%) closed flat in the weekly session, despite announcing slightly better than expected 2Q07 results. The results were accompanied by a profit warning and a positive management outlook for the second half. Komercni banka moved up by 1.2% after some brokers increased their (62 USD, -0,26%) prices. (1 531 CZK, 2,48%) Bank was off by almost 3% despite Patria/KBC's recommendation to Hold from Sell. Unipetrol’s price during the past week was influenced by a profit warning, which was later denied as an accounting error. (286 CZK, 3,07%) posted results broadly in-line with expectations.
For this week, we expect CEZ to report its 2Q07 results. Our estimate and the market's consensus is for a net profit of CZK 7bn. An usual amount of macroeconomic date will be released this week.