Czech market closed higher, but underperformed regional peers

Prague stock exchange measured by the PX Index increased by 0.29% and underperformed local bourses due to late sell-off on CEZ and Zentiva. The main player of the day was Komercni banka (KB) and gained 3.34% on the back of approved record dividend of CZK 250 per share which topped both market and our expectations (CZK 100/share). Zentiva was sold-off by foreign accounts and lost 0.33%. We also saw late sell-off on CEZ when the stock decline in the last 30min by 1% to finished down by 1.18%. The biggest looser of the day was Orco. After profit taking lost 2.84%. Cesky Telecom (CT) finished a touch higher (0.38%) despite deep drop of Polish peer TPSA. CT reports its 1Q06 figures tomorrow, we estimate net income to come at CZK 2.1bn. Tomorrow is dividend record day for Orco and company will hold EGM and AGM. Tomorrow we will also wait for more info from Zentiva’s EGM.