The PX-50 index closed down by 0.36% to 552.60 points. The market once again traded in above-average volume, exceeding USD 49.63 mil. Most of that came from the trading of Cesky Telecom shares, as more than USD 30 mil. worth of its shares changed hands. The stock traded in a wide intra-day price range of CZK 311-342.60 on speculation that a placement of Cesky Telecom shares by Credit Suisse First Boston (at CZK 339 per share) was not fully subscribed. That speculation prompted natural sellers, and a certain amount of intra-day short selling, after which many investors sought to cover positions toward the end of the session. We expect Cesky Telecom shares to trade with increased volatility in the coming days, but we do not expect investors to substantially short-sell the stock as its dividend record date approaches (June 27; the dividend is due on October 6). Today, the supervisory board of Komercni banka is expected to announce a 2002 dividend proposal (see below).
Milan Procházka