Czech equities, as measured by the PX
Index, were off by 0.5% for the week to close at 1,818.5. The overall volume of trading on the PSE reached USD
793.6m, 14.3% above its 12M weekly average of USD
CEZ was the most actively traded listing with domestic investors on the buy side. Again, it reached new record levels during the week. Zentiva
decreased and was influenced by the weak numbers of its Hungarian peers. Komercni Banka gained almost 4% and became the best performing stock of the past week.
Positive news for the stock included some analysts' increases in KB
’s target price even though the Bank posted mixed 1Q07 results. There was negative pressure on both local real estate stocks as some brokers cut their allocations and ratings of European property stocks. Orco
lost 3.3% and ECM even more – 4.6%. During the past week, we also we saw drop in the value of the shares of textile producer Pegas
by 5.4%. Telco operator Telefonica O2
CR declined in line with the overall falloff in the sector.
For the coming week, we should see a negative market reaction to Monday’s (May 14) worse-than-expected 1Q07 results posted by Zentiva
. As for other Czech blue chips, Unipetrol
and CEZ should also be announcing their first quarter results for 2007 later in the week.