Shares on Prague Stock Exchange fall by 5.6 percent Tuesday

The Prague Stock Exchange saw a fall of 5.6 percent on Tuesday, as world markets suffered turmoil in the wake of the collapse of one of America’s largest investment banks and the takeover of the world’s biggest brokerage firm. In an extraordinary move, trading in shares in real estate company ECM and mining firm NRW were suspended as both lost over 20 percent of their value. On Monday the value of shares on the Prague Stock Exchange dropped by 4 percent. An analyst from Patria Finance told the Czech News Agency there were no signs the fall in share prices on the Prague bourse was over.

A member of the board of the Czech National Bank, Mojmír Hampl, told Reuters that the indirect impact of the crisis on the Czech economy could be more severe than originally feared. Mr Hampl also said the fact growth estimates for Europe were constantly being revised downwards was bad news for the Czech Republic.