CEZ was in the spotlight after information leaked that CEZ may eventually purchase 16% government held stake for further resale. The market feared a stock placement may be imminent and therefore the stock plunged over 6% in early hours of the trading. Toward the afternoon the stock recovered to CZK 345 and stayed at this level. A large amount of stock changed hands on the day. CEZ came later with a press release which did not bring any more new facts. Now, everyone focuses on Jan-21 GM of shareholders where issue will be brought up and perhaps voted on by shareholders. Later on that day, deputy minister said company should stay lower or even stop dividend payments and rather focus on expansion. Cesky Telecom continues to be well supplied from London and the stock may trade at CZK 385 level again today.
The December PPI is to be released today at 9:00am CET. Patria estimates the PPI to decline by 0.1% m-o-m and to rise by 7.9% y-o-y. The market expects the PPI to fall by 0.2% m-o-m, and to increase by 7.8% y-o-y. In November the PPI was stable m-o-m and rose by 8.2% y-o-y.