The Czech market recorded further gains on Friday, adding 2.15% to close at 911.19 points. The market followed strong sentiment on its peer markets and also benefited from a series of positive brokerage notes. Cesky Telecom continues to be in the spotlight as the markets await details of the government’s offer. On Friday, investors realised that the 6% drop following the SPO announcement was exaggerated and started buying back. We saw continuous demand for the stock throughout the day. We maintain our view that the placement of the 51% stake will have only a marginal and short-lived impact on the market price. Quarterly results are so far in line with market expectations and companies so we see limited risk in changing sentiment due to this month's results. This week the market will eye the results of the US Presidential, House and Senate elections; domestically we may expect a decision by the Czech cabinet on the sale of the 51% stake at its meeting on Wednesday. Today, CEZ and Zentiva report their 9m results; we believe they should not bring any surprise in relation to estimates. Volume in the SPAD reached USD 71.50m.
Tomáš Gatěk, Patria Finance