The PX-50 index closed up 0.66% on marginal volume as some of the neighbouring markets were closed for "Corpus Christi" day. Thin volumes were present throughout the day. Unipetrol gained 3.2% on retail demand following the recent settlement of the PKN deal and expectations for the obligatory buyout bid by the new owner. Cesky Telecom traded in a few bloc trades in the CZK 457.5-458 range - demand continues to originate from abroad. We expect another quiet day as London is closed on Monday.
France is holding a referendum on the new European constitution on Sunday. According to the last two opinion polls, the ‘no’ vote is leading with 55%. Should France vote no, volatility in the financial markets will increase, in particular in currencies and government bonds. In addition, the equity risk premiums for European stocks would also rise, which would have a negative impact on valuations.