In line with a sharp drop on major European and EMEA markets, Prague followed south at the same speed. The PX-50 index lost 3.18% to 465.70 points on a trading volume of USD 15.4 mil. Leading the downward charge was Cesky Telecom, down 4.66% to CZK 446.30. Strong international sellers were present throughout Wednesday’s session. More than 630,000 shares were traded and the overall trading activity was high. CEZ lost 2.25%, to CZK 107; since Monday, the stock has lost approximately 5% on low volumes (yesterday, 510,000 shares). While we like CEZ, and recommend buying the stock, we are concerned about the current low liquidity and fear that the decline may continue. As for Cesky Telecom, we believe that the stock will today recover some of yesterday’s losses. Generally, activity is unlikely to exceed Wednesday’s trading.