The PX-50 index closed down 0.37% as investors locked in recent profits; banks were the most obvious targets. CEZ continued to be sizeably bid by international accounts as the market awaits the dividend announcement due this week. Philip Morris touched CZK 18,000 intraday; a limited supply of shares and short squeeze among local market makers were behind the growth. Cesky Telecom broke above CZK 460, though we feel the stock will still test the lower 460s before any significant upward move. We expect a lighter opening thanks to the weak US close, though the market generally still seems to be better bid.
The 1Q05 balance of payments is to be released today at 10:00am CET. Patria estimates a CZK 11.8bn (USD 517m) surplus.