Prague shares close lower, pulled down by utility stocks |
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Fri, 19 Oct 2007 15:58
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PRAGUE (Thomson Financial) - Prague shares slid in light trading, as power group CEZ and refiner Unipetrol pulled the market down following broker downgrades.The PX index closed 0.52 pct down at 1,876.1 points.It was the second straight day of slow trade, with volumes reaching 1.99 bln crowns, well below the 12-month daily average of 3.7 bln crowns, and analysts said the market was still lacking clear direction ahead of earnings seasons, which kicks off Thursday next week.Unipetrol led trading and recorded the steepest drop on the day, falling 4.19 pct to 313.2 crowns, after being downgraded to 'sell' from 'neutral' at UBS, which maintained its target price of 280 crowns. Unipetrol fell after trading near its all-time high of 329 crowns in recent weeks.Shares in Central European Media Enterprises (CME) closed 0.32 pct down at 2,046.5 crowns. Media reported today that CME's Czech television station TV Nova, which is the main revenue driver for the group, plans to hike advertising fees 20 pct in 2008, although analysts said this rise may be offset by higher market competition next year.CEZ, the exchange's largest company, also fell 0.39 pct to 1,261 crowns after Citigroup cut the power utility to 'hold' from 'buy', saying the negative impact of the state selling an expected 7 pct stake in CEZ outweighs the positive impact of the group's share buyback programme, which should wind down by the end of the year.Erste Bank, the second most weighted company on the exchange, helped stem the drop in the PX index, edging up 0.32 pct to 1,574.jason.hovet@thomson.com +420 222 191 109jrh/akCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Prague shares close lower, as trading volumes halve 