Shares in Czech property developer Orco stopped trading on the Prague stock market on Thursday after they slumped more than 20% from opening levels. Orco shares fell to an historical time low of EUR 14.11 on Thursday morning. The stocks shortly resumed trading and closed the day with a drop of almost 15%. Orco shares have lost about 40% of its value since the beginning of the week.
Shares in Czech property developer Orco stopped trading on the Prague stock market on Thursday after they slumped more than 20% from opening levels. Orco shares fell to an historical time low of EUR 14.11 on Thursday morning. The stocks shortly resumed trading and closed the day with a drop of almost 15%. Orco shares have lost about 40% of its value since the beginning of the week.
In an attempt to reassure investors, the Prague-based developer said that the group does not 'need to resort to the financial markets' and confirmed its EUR 200 mln asset sales target for this year. The developer, whose stocks have lost 80% since the beginning of 2008, has a current market capitalisation of EUR 154 mln.
'Confronted with the drop in its share price, the group reiterates that it does not intend to use any of the available step up equity possibilities in the foreseeable future. The disposal program is on schedule,' the company said in a statement.
It added: 'There has been no breach of covenant on any of our mortgage financing; nor is any foreseen.'
