Negative sentiment spread on PSE during past week

Czech equities, as measured by the PX Index erased 4% in the past week and closed at 895 points. The total turnover on the PSE was of USD 419m which is 40% below the 12M average of USD 703m.
We experienced quite negative trading on the PSE during past week. Only Philip Morris ČR and Orco finished with small gains. NWR dived the most followed by CME despite its upgrade by JP Morgan. The most actively traded CEZ created more than the half of total volume on market but lost 4.3%. Both banks followed negative sentiment. Erste closed down by almost 4% and Komercni erased 5.1% despite target price upgrade from HSBC to CZK 3,800 per share. Surprisingly CNB left the interest rates unchanged at 1.5% while market expected 25bps rate cut.

We do not expect any major price moving news this week. Investors can register for Orco’s AGM till Friday (July 3).