Prague

Panics of global markets shattered Prague bourse, it lost all earnings from 2007. Further, what started as morgage crises in US is comming with real influence to Eastern European economies. Financial crises will truly influence the development not only in 13 countries of Eurozone but also the faster growing Eastern European ones. New assumptions of growth of Czech economy lessen to 4%.

Prices of shares traded on the Prague bourse after a further selloff today slumped to the lowest level since the beginning of last January, with the PX index losing 3.09 percent to 1,570.1 points, the bourse said. The index has decreased by 13.5 percent this year. In about two weeks Czech shares wiped out nearly all the profits made last year.

Developer company ECM was the biggest loser. It fell by 10.15 percent to a new low of Kc760.6, while last spring it was trading at Kc2,000. ECM has lost 37 percent since the end of last year. CME, Komercni banka and Orco Property losses ranged between four and six percent.

Analysts assigned the fall to the bad situation in the USA that affected markets all over the world. So far investors have distinguished between problems of advanced and emerging markets but fears of recession in the USA that are rising every day have made them change their view, said Next Finance chief economist Vladimir Pikora.

Growing panic over the falling shares is pushing most domestic shares to levels that recently seemed impossible to reach. No buyers are seen on the market. They are waiting to see where the fall stops, said Josef Kohout of Patria Finance.

Telefonica O2 was 3.57 percent lower at Kc499.5. Unipetrol put off 2.63 percent to Kc296.1 and CEZ shed 2.03 percent to Kc1,204. Last year, the energy companies gained more than 40 percent.

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