Czech equities, as measured by the PX Index, were off by 3.6% for the week, to close at 1,688.1. The overall volume of trading on the PSE reached USD 1,333.0m, 50.1% above its 12M weekly average of USD 887.9m.
The market erased some of the week's loses at the end of Friday’s session when the Fed announced that it would be cutting its discount rate by 50bps to 5.75%. The entire SPAD region closed down for the week. (1 690 CZK, 1,26%) lost almost 10% during the past week and was the worst performing stock. CEZ posted its 2Q07 numbers, which came in generally in line with analyst expectations. The stock was supported by its ongoing share buy back program, but still declined by 2.3% on the week. (277 CZK, 0,87%) came in with one of the best performances of the past week. After its better than market expected 2Q07 results, was off by only 1%. Komercni Banka fell by 5.4% despite its addition to the CEE TOP picks at (63 CHF, -0,24%). (1 431 CZK, 0,42%) closed down by 4.6%. (578 CZK, 0,96%) O2 CR was seen as a defensive stock and showed the best performance of the past week closing weaker by only 0.9%.
For this week, there should be the third reading of the planned reforms in the Parliament. The government plans to discuss CEZ’s share swap. No other major corporate catalysts are expected for coming week.