The PX-50 index closed down 1.4%, with ongoing outflows from equity and emerging markets assets being the main reason behind the decline. We are seeing similar weakness in neighbouring markets. CEZ and Komercni Banka were the main targets of sellers, both dropping over 3% on the day. Only Philip Morris and Cesky Telecom outperformed the market as they both have stock-specific stories (a high dividend yield and buy mechanism for the latter). Even PM Paroubek’s success in the confidence vote failed to spark any buying appetite. Today many European bourses are closed for a holiday (incl. Hungary and Austria), so we expect low activity but still a bias towards downward pressure.