Prague stock market closed deep in red. PX Index lost 2.12% as all blue chips declined. CEZ was hit by sharp fall of the CO2 allowances price. International accounts knocked off stock by 4.12% to CZK 790. We saw heavy volumes as almost 1% of the company went through the market. Zentiva closed down by 3.61% after foreign sell-off and we believe that it could be positioning for the worst than expected numbers. Cesky Telecom fell by 1.06% despite reporting better then expected 1Q06 results and was traded in the range of CZK 501 – 515. Record dividend CZK 250 per share did not help Komercni banka as it lost almost 2%. Orco was the only stock finishing in black by 1.9% after no news.
Cesky Telecom announced 1Q06 net income at CZK 2.1bn versus market estimates CZK 1.9bn. EBITDA margin was 48.5% better than market consensus 46.6%. Shareholders approved dividend CZK 45 per share.
Komercni Banka reports its 1Q06 figures tomorrow at 9:00 London time. Net income expectations are CZK 2.2bn.
Erste also reports 1Q06 numbers tomorrow at 6:30 London time. Net income expectations are EUR 207m.