The Czech market corrected its recent sharp losses, with the PX-50 adding 1.62%. CEZ was pulled up 3.76% primarily by domestic accounts to find levels above CZK 700 again, and we believe the stock will sustain this in days to come. Komercni banka traded up over 1% and its price was boosted by the Czech National Bank’s governor’s comments relating to interest hike timing. Cesky Telecom and Unipetrol traded up in sympathy with rest of the market. We continue to expect positive sentiment to persist on the Czech market.
Unemployment: The unemployment rate decreased to 8.8% in September from 8.9% in August. However, this move is a seasonal pattern. Structural unemployment remains the same.
CPI: Consumer prices rose by 0.3% in September, increasing annual inflation to 2.2% from 1.7% yoy in August. High gasoline prices and lower holiday travel prices affected the overall price level.