The Czech market again posted gains on Tuesday. Cesky Telecom broke through the CZK 500 psychological resistance barrier yesterday, the stock trading on heavy volume reaching almost USD 97m. We think Cesky Telecom will continue attracting further interest, particularly with the outlook for extensive dividend payments or possibly buy backs as its balance sheet is not optimally balanced. Unipetrol, Zentiva and Orco also posted gains of over 1%, with Orco outperforming its European real estate peer group after Morgan Stanley downgraded the sector to Cautious. We continue to be bullish on Cesky Telecom, despite expecting some profit taking to occur at current levels.