The PX-50 index rose 1.79% to 420.30 points yesterday, led by gains in Cesky Telecom and CEZ, up 3.90% and 2.80% to CZK 252 and CZK 88, respectively. While we saw some short covering in Cesky Telecom ahead of today’s Cabinet meeting (Cabinet is expected to discuss the second-round bids received in the company’s tender sale--see below), end buyers lifted CEZ stock. Other names traded quietly with no particular interest. Foreign flow remains limited. From a trading point of view, we still see Komercni and Ceske radio as the top selling picks, while we recommend buying CEZ and Philip Morris CR.
Milan Prochazka