Czech equities, as measured by the PX Index, were off by 2.0% in the last week before the Christmas holiday to close at 1,769.0. The overall volume of trading on the PSE reached USD 1,220.4m, 11.6% above its 12M weekly average of USD 1,093.4m.
CEZ was the most actively traded listing with about half of the total turnover. The price of the power producer also fell the most. CEZ announced new 2008 guidance and a JV with the Hungarian company . Morgan increased its target price for CEZ by 20% to CZK 1,638 per share, but the price was hammered by huge sell-offs in positions that took place at the end of week. Big laggards on the exchange were also the developers. lost 6.5% and 3.1% on the back of ongoing pressure in the real estate sector. jumped by almost 6% as it was removed from the “least preferred” list at and it was supported by local buyers. Also, strengthened with domestic accounts on the buy side.
For this week, we don't expect any major corporate catalysts. The new weightings for the PSE’s main PX Index are valid from Thursday (December 27), but changes were previously announced at the beginning of the month.