The PX-50 Index dropped over 1% though still sustained levels above 1,000 points. Komercni banka was the day’s looser after it dropped over 4% on sizeable international supply. There was no relevant news behind the weakness, we though think investors factored in sharp fall of the Russian market and this sentiment potentially spreading across CE3 or secondly (and more likely in our view) CZK appreciation versus USD seems to have come to an end and accounts lock in both capital & currency gains. We think current levels are not inspiring to increase position and expect further weakening. Cesky Telecom trades in narrow range. Cabinet’s decision on timing has no implication for the share price. Zentiva seems to be the only stock having net inflows, share price though rose only marginally yesterday as large supply of shares is still apparent on the market. Volume in SPAD reached USD 62.42 m.
As expected, the unemployment rate stayed unchanged at 8.9% in November. November‘s CPI decreased by 0.1% m-o-m; while annually the index gained 2.9%. The market expected a growth 3.0% y-o-y.
Milan Procházka, Patria Finance