The PX-50 index closed down 2.01% to 629.9 points yesterday amid a large sell-off. The losses in Komercni banka and Unipetrol stock exceeded more than 4%, and CEZ dropped 3.50%. Cesky Telecom, our favourite stock, held some ground and lost only 0.8%. Weeks of consistent selling after a prolonged period of successive gains signal a shift in investor’s opinion here: that the Czech market no longer offers decent upside. Indeed, many stocks have reached level of targets prices (e.g., CEZ, Erste Bank) and, therefore, we do not expect any fresh money to arrive into Prague any time soon. Total volume in the SPAD system reached a considerably above-average USD 72.28m yesterday.
Milan Procházka