The Czech market jumped by over 1.2% yesterday, as Cesky telecom broke a 4-year record on heavy volume. The stock rallied after the CFO‘s comments regarding strategy and forms of cash distribution. Though we believe that a dividend or buy-back programme as such are in the distant future, most of the accounts decided to start accumulating shares ahead of the announcement. CEZ found resistence at CZK 700, despite an upbeat research note from a local bank; Komercni traded a touch higher on a similar initiation from a London specialist bank. Erste Bank declined, with sellers originating mostly from Austrian customers, as some were raising cash for the Telekom Austria EUR 130m secondary offering yesterday.
Unemployment (November): Patria estimates 8.4%; Reuter’s poll median value 8.5%
CPI (November): Patria estimates 2.6% y/y; Reuter’s poll median value 2.6% y/y
Balance of payments (Q3)
Construction output (October)