As expected, a further downfall in European equities also hit Czech stocks, which lost for the 10th trading day in a row yesterday. Both telecom stocks, Ceske Radio and Cesky Telecom, were under pressure, losing 3.82% and 2.23%, respectively. CEZ tested levels below CZK 90, trading as low as CZK 86.22. Total trading volume reached USD 11.7 mil. on Monday. There are virtually no buyers on the market, we only see a couple of short coverings during the day; it seems that market participants do not make positions for longer than one day. Overall, the market lacks adequate flow; we estimate that some 80% of all volume is made up by domestic investors. Today, we expect the market to trade in line with the major European indices.
(Milan Procházka)