Czech equities, as measured by the PX Index, were up by 6.9% in the past week and closed at 881 points. The overall volume of trading on the PSE reached USD 344m, 39% below its 12M weekly average of USD 566m. Last week was quite successful. Banks jumped up following regional banking sector. Komercni banka added almost 16% and became one of the best performers. The star of the week was Orco as investors strengthened its positions ahead of AGM. Telefonica O2 CR announced results which more or less matched analysts’ estimates. Also CME reported its quarterly numbers which came in according to projections at sales and EBITDA levels. However, its net income was impacted by impairment charge related to Bulgarian operations. The only names that declined during the past week were CME and AAA. Komercni banka will report its 1Q09 numbers on Thursday (May 7). We expect investors to be focused on cost of risks which should remain high boosted by Moravia Energo default. CEZ is traded ex-dividend from Tuesday (May 5). CNB will decide about interest rates on Thursday. We expect a 25bps cut to 1.5%.