The PX-50 index fell sharply yesterday, down 3.5%. All equities lost yesterday, with the losses exceeding 3% in all blue chips. Komercni banka traded in a considerable volume, with sellers predominantly from international accounts, the latter also the case for Cesky Telecom, CEZ and Unipetrol. There was no single factor that instigated the broad sell-off yesterday; rather, we believe the losses can be attributed to the worsened macroeconomic prospects of the Hungarian economy, which triggered investor anxiety in the Czech Republic’s. We do not expect a major recovery of share prices today; moreover, we think that many domestic brokerages are still long in positions and that their time to take stop losses has not come yet. Prague will likely trade on little or no relevant news today. Volume in the SPAD trading system was a massive USD 74.09 mil. yesterday.
Milan Procházka