The Czech market closed weaker on Wednesday in-line with the region's other markets. Trading volumes continue to be below long-term averages. CEZ, (534 CZK, 1,91%) O2 CR and Komercni Banka were the most actively traded listings. O2 CR got a lift at the close from an international buyer counting on good results being announced today. Komercni fell to an artificial day's low of CZK 3,652 due to an error with trades more than CZK 100 lower than the market. Komercni, in a manner similar to O2 CR, was lifted ahead of its upcoming reporting announcement. CEZ was unable to brake through the CZK 1,260 level and finished the session at CZK 1,244.
Czech stocks are set to open up thanks to gains on Wall Street as investors speculated that the FED will keep cutting rates. 02 CR is expected to be in focus again, trading higher due to strong international demand ahead of its reporting its FY2007 numbers, which are due out today after the close. We expect to see a rebound in CEZ as it should follow along with the recovery in the other EU utility companies. Komercni should gain as well following line with gains by financial stocks in the US.