The market erased 0.48% of its value yesterday alongside a substantial decline in traded volume and investor activity. Komercni banka dropped over 2% after comments from a Central bank representative that were contradictory to previous governors’ and implied that a rate hike may not happen imminently. We continue to expect a 25bps hike in January. Unipetrol lost over 3% on domestic supply, while Zentiva continues to be better offered from London accounts. The Czech market has currently risen almost 37% YTD, and we think that closer to the year’s end we may see some year-end profit taking across the board.
Balance of payments (August): The balance of payments figure (August) is due at 10:00am CET. Patria estimates a deficit of CZK 16bn vs. the market consensus of a deficit CZK 11.5bn.