Index PX50 rebounded on Friday, correcting a 3.50% fall from the previous session. Friday’s biggest gainers ranked among Thursdays biggest losers. Komercni and Cesky Telecom added over 3%, CEZ managed to gain back 1.25% on its close. We think most of the strength comes from covering short positions and opening speculative long positions, as we saw very little natural flow throughout the day. Cesky Telecom traded in good size at CZK 352 finding descent supply from the international accounts. We believe Cesky Telecom will continue to rise in days to come with many of the buying support coming from large domestic accounts. Zentiva also seems to be consolidating at CZK 700 level and we think it may grow further. Volume in SPAD reached USD 118.49 mil. - better than average.
GDP rose in Q3 by 3.6% y/y compared to the market expectation of 3.8%. The previous figure stood at 4.1% y/y. Industrial output in October increased by 8.1% y/y compared to an expected 4.7%. The previous figure stood at 6.6% y/y.
Balance of payments for October is to be released today at 10:00am CET. Patria estimates a C/A deficit of CZK 14.0bn, the market expects CZK 13.7bn.
Milan Procházka, Patria Finance