The PX-50 index lost a further 0.5% yesterday

The PX-50 index lost a further 0.5% and we saw ongoing profit taking from international accounts as well as domestic buyers. We think this profit taking is occurring on the back of the weakening local currency, a trend seen across the region. Unipetrol dropped almost 9% again as marginal investors reduce exposure on fears the stock may be removed from the SPAD trading segment. Cesky Telecom closed unchanged, showing no reaction to the news that Vodafone has entered the local wireless market - we think that currently the major theme for the stock is the success of the privatisation by the end of the month. We think the currency move will give us further guidance in days to come, and a further weakening may trigger even deeper sell offs on the equity market.