The PX-50 index slid down 0.24% to 408.10 points amid a very low volume of only USD 10.60 mil. Unipetrol was in focus again as it marked a new all-time low of CZK 31.60. Although the stock trades below the value implied by the fundamental valuation, this seems to be more than offset by uncertainty, and market speculation on what might happen if bondholders and bank creditors exercise their put option rights in Unipetrol given the imminent ownership change. Trading activity in other stocks was subdued; only Cesky Telecom had foreign sellers, bringing the stock down to near CZK 310. Today, the market is likely to be inspired by the encouraging US close yesterday, but we do not expect any major gains.
(Milan Prochazka)