Prospect of low 2002 profits hits Pekao stocks

The shares of bank Pekao, central Europe's largest listed lender, fell over 3.5% on Thursday amid fears over bad debt provisions and poor fourth quarter earnings. Pekao, which accounted for half the Warsaw Stock Exchange turnover yesterday, closed down 3.63% at zl. 84.90, its lowest level since October 2001. "Some investors are speculating that its net results might be even below the market consensus and so someone decided to sell," said a broker at a Warsaw-based foreign brokerage. Earlier, a source close to the bank said that it earned zl. 900 million in 2002, well below its zl. 1 billion target. Doubts are growing whether even if that figure can be met. Pekao, whose shares have lost nearly 10% since mid-January, will unveil its full 2002 results on February 12. Over the first nine months of 2002 it earned zl. 456 million. (Reuters) M.M.