Index PX 50 gained 0.5% on Monday

Komercni banka and CEZ were the most actively traded stocks. Komercni banka benefited from strong performance of its regional peer OTP Bank after the latter had posted its FY04 results (+5.8% yesterday). We also believe regional banks benefit from expected outflow of money from the Estonian lender Hansapank since Swedbank announced public bid for all outstanding shares in the lender and many portfolio investors are expected to reinvest proceeds across region. Hansapank bid is worth app. EUR 1.4bn CEZ failed to sustain CZK 390 level but the recent rally and positive news flow may suggest that it may test CZK 400 in the near term. Philip Morris continued to be sold off on profit taking; the pace of the sale was accelerated by series of downgrades on the stock both from domestic as well as international houses.