A powerful rally – the biggest single day gain in the last three years - occurred on the Prague bourse yesterday. The whole market corrected recent deep losses as most of the stocks were trading in oversold territory. CEZ and Komercni posted gains of over 6% and 7% respectively, while Unipetrol gained 11% on the day. Philip Morris lost over 2% as investors shifted funds into the rest of the market. Again, we reiterate that the current volatility is not based on any underlying news flow but rather technical and sentiment factors. We expect volatility to remain above average in days to come, with market movements being closely related to currency moves and sentiment on the global markets.