The Czech equity index PX-50 lost another 1.70% on Thursday, as the market weakened on further losses on European bourses. Despite a surprisingly good Q4 2000 GDP figure, the market did not find enough strength to resist the influence of major world indices. News concerning Ceske radio, that there are only two potential bidders whose bids are around CZK 600 per share, caused an aggressive sell-off from local market makers and the stock lost more than 11.25% on the day with trading as low as CZK 850 (intra-day range of CZK 850-971). Despite the fact that the company is soon likely to pay out a generous dividend (aprox. CZK 325 per share gross dividend), a number of investors may soon start realizing their stop loss limits in the name. We advise to avoid the stock. Total market volume on Thursday reached USD 11.68 mil. The market will likely benefit today from last night’s late rally in the US.
(Milan Procházka)