Index PX-50 continued in what it seems an endless rally. The market continues to break its all time high levels with CEZ and Zentiva trading at their respective life time highs and volumes remaining above long term average levels. CEZ dominated trading on Friday on solid international demand; we believe the stock continues to benefit from recently published consolidated quarterly report, which beat expectations. Cesky telecom still trades at CZK 360 after series of media reports government may eventually decide for a direct sale rather than capital market transaction, which is well anticipated. We think media flow and conflicting reports will be intensively present in the market till this Wednesday, Dec-1, when Cabinet finally decides on the sale method (or eventually delay the decision once again). Such decision will be crucial not only for Cesky telecom share price performance, but will also be a trigger for potential massive repositioning within Czech market. Komercni broke above CZK 3300, with international supply though still apparent. Volume in SPAD reached USD 95.10 mil.
Milan Procházka, Patria Finance