The PX-50 index rebounded sharply as European markets bounced back from heavy losses on Friday to rally yesterday. The PX-50 index rose 1.54% to 454,7 points. However, the rally was not accompanied by heavy volume, and we believe local market makers covering short positions accounted for the rise. CEZ and Cesky Telecom were the top gainers, both adding more than 4%. CEZ traded on a positive note due to the general election victory of the Social Democrats (CSSD). Total market volume reached USD 14.7 mil. Today, the market is likely to continue trading up, though we still expect lower than average volumes.
(Milan Prochazka)