Following gains in Western Europe, Czech equities advanced, led by Cesky Telecom and Philip Morris. The PX-50 index was up 1.71% on a moderate volume of USD 10.66 mil. Cesky Telecom rose 3.71% to CZK 261 on hopes of a speedy privatization on the part of the new government. Philip Morris and CEZ followed in adding more than 3.6% and 2.3%, respectively. We believe yesterday’s market strengthening has little footing, however, as foreigner investors continue selling Czech equities. Today is the last trading day of the quarter, so we might see some strengthening towards the end of the session.
Milan Prochazka