The PX-50 index in Prague went through a sharp decline as strong international selling in Komercni occurred after the Czech Cabinet announced that Societe Generale of France had been awarded the tender sale for KB, based on a bid of CZK 40.2 bil. We believe, however, that as the bid was in the top range of market expectations of selling price an upward correction might occur. Komercni lost 8.94% to CZK 1,049. Also, CEZ, still facing strong pressure, lost 1,78% to CZK 85.44; however, demand is quite good at CZK 85. Total volume reached USD 22.52 mil. yesterday. For today, we expect the Czech market to be led early by US market’s closings overnight, with some position closing ahead of the weekend likely.
(Milan Procházka)