Czech equities, as measured by the PX Index, were off by 3.2% for the week to close at 1,569.8. The overall volume of trading on the PSE reached USD 784.8m, 2.6% below its 12M weekly average of USD 806.1m.
CEZ was the most actively traded stock over the last week on the PSE with more than half of the total volume. CEZ fell 6.2% after the company announced its 2007 guidance, which came in well below both the market's and our estimates. Some analysts downgraded the stock and Patria lowered its fair value to 1,095 per share. The ongoing selling in international accounts of the stocks of Zentiva, Komercni Banka and Telefonica O2 CR pushed all their prices down. Erste Bank was off despite upgrades from several analysts. Orco decreased due to selling in Paris and it traded in line with its regional peers.
We expect to see only limited activity on the PSE in the three days between the Christmas and New Year's holidays with no major corporate catalysts to drive shares.