The PX 50 index gained 0.40% yesterday after a powerful rally from Tuesday

Overall, the traded volume remained above average levels. Cesky Telecom touched CZK 430 in the morning on domestic buying. However, we saw several London sellers locking in profits. Unipetrol erased 2.2% on the day, though traded with almost 4% intraday loss - as in of Cesky Telecom, investors locked in profits. Zentiva gained 3.20% as investors build long positions ahead of Q4 release. For today we expect further consolidation of Cesky Telecom, in days to come we expect CZK 415-425 trading range unless any fresh news regarding to the 51% stake placement occurs. Komercni Banka seemed to have gained strong momentum and we expect further upside in the stock price.

The central bank is holding a monetary policy meeting today. The market expects no changes in interest rates. The 2-week repo rate currently stands at 2.50%. The CNB will also update its inflation and economic growth forecasts. A press conference is expected at 15:30 CET