The Czech market corrected its recent strong performance yesterday as investors locked in profits in CEZ, Erste Bank and Komercni. CEZ followed the recent downgrade by a leading London investment bank. Sellers occurred from both domestic as well as international accounts. The volume traded in CEZ remains high at USD 54.99m. Only Unipetrol continues to be well bid from a local buyer who disclosed a 8% ownership stake ahead of today’s EGM. We believe the market will continue locking in recent gains. The US resumes trading today after yesterday’s holiday.
Balance of payments for 2Q; the market expects a deficit of USD 1.05bn
Construction output for July; the market expects +15% yoy.
The PM Jiri Paroubek said yesterday that after meeting with CNB and the Ministry of Finance, he will support the adoption of the euro in 2010.