Czech market closed in red again

Prague stock market closed in red again pulled down by CEZ and Unipetrol. CEZ dropped to CZK 750 level, when during the day sank even to CZK 740. We saw huge volume went though the market. Foreign accounts were selling while domestic buying. Unipetrol was the main looser after news that it did not create provisions against possible lawsuit with Agrofert over Deza privatization. Unipetrol may pay CZK 817m if it loses the court battle. Erste rebounded from Friday’s sell-offs on UBS upgrade. We saw profit taking on Komercni banka. Zentiva reported better than we had expected 1Q06 results, gross margin was far above our assumptions. Philip Morris declined to a three years minimum on general weakness of the Czech market.