CEZ was sold off during the morning and traded down over 3% intraday. Sellers were however hesitant to sell below CZK 410. Cesky telecom traded at or slightly below CZK 400 - we believe the stock will face strong resistance at this level, especially given the current political crisis in the Czech Republic. We are also not expecting any price sensitive news in the month to come as potential bidders perform due diligence in the Cesky Telecom books.
As the market expected, the Czech National Bank left interest rates unchanged (at 2.25%) at yesterday’s board meeting.