The PX-50 continued to gain, adding some 0.4% yesterday

The PX-50 continued to gain, adding some 0.4% yesterday, though the market came under pressure in the afternoon. There were some sellers after Hungarian companies reported worse than expected results. The weakness in Budapest spilled across the region. Philip Morris traded with substantial intraday volatility yesterday, weakening over 3.3% on the close after reaching a 52-week high of CZK 21,451. Komercni banka closed down 0.4%, CEZ touched a fresh all-time high again after announcing the results of the 400MW auction two days ago. Erste continues to be well bid in Vienna by a single large buyer. We think more accounts will be inspired to take profits today, though our near-term outlook for the market remains unchanged: up.

The balance of payments figure (June) is due at 10:00am CET. Patria estimates a deficit of CZK 7bn vs. the market consensus of a deficit of CZK 6.3bn.