Prague followed the major markets in Europe on Friday, losing 1.81% (the PX-50 index closed at 499.10 points). Cesky Telecom was the main loser of the day, down 2.49% at CZK 525.80, as London market makers sold aggressively in the afternoon (though the selling orders hardly exceeded 100,000 shares). We feel, however, that Cesky Telecom stands to benefit more than any other Czech stock should the Federal Open Market Committee deliver a cut in US interest rates by the expected 50 bps. Komercni banka, as expected, traded around CZK 1,000 on Friday; from the short-term point of view, we advise to take advantage of the current strength in the stock and reduce KB positions; our long-term recommendation is hold. Trading volume in the stock has declined—only 56,485 shares changed hands on Friday. Total market volume reached USD 12.05 mil. on Friday. For today, we expect a positive opening, with trading likely again focused on Cesky Telecom and Komercni banka.