Prague

As the crises deepens on the world financial markets, share prices on the Prague Stock Exchange (BCPP) sank to the lowest level in over fifteen months. The PX index lost 4.62 percent to 1,489.6 points, according to the bourse results.

Power company CEZ, the most traded title on the bourse, shed over 5 percent to Kc1,170.

Dealers ascribe the fall on the bourse to the selling mood on advanced foreign bourses where investors started to fear recession of the US economy which would hit global markets as well.

Even Friday’s package US President George Bush presented to back the weakening US economy did not make things better.

“Falls of more than 6 percent, which hit western European markets, are really unseen and I do not dare estimate how overseas markets will behave tomorrow,” Patria Finance dealer Josef Kohout said.

Share markets are seized by panic and far from reality because the Czech economy and companies are in a very good condition, said Next Finance analyst Vladimir Pikora.

Second-hand car marts chain AAA Auto sank by 6.77 percent to Kc29.6, that is nearly half the price at which it entered the bourse after an IPO in September 2007.

Telefonica O2 lost 5.72 percent to Kc474.5 despite expected dividends and better economic results.

Erste Bank fell by 4.53 percent to Kc1,011 and Komercni banka was off 3.59 percent to Kc3,442. Philip Morris even slid by 6.18 percent to Kc6,685.

Despite the very low prices of Czech shares in the long term, Pikora recommends to buyers rather not to enter the market now because he is concerned that the panic will last.

“To buy today is still risky, I would wait a little bit more,” he said, adding that the best thing was to buy when share prices are falling.

(Czech News Agency)

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