The PX-50 index closed down 1.47% at 892 points on Wednesday (on Thursday the market was closed for a public holiday). The main reason for such a sharp decline was the decision of the privatization commission advising the Czech Cabinet to dispose of its 51% stake in Cesky Telecom via capital markets. Cesky Telecom tumbled over 6% during opening hours to below CZK 310. However, later demand pushed the stock back up to the CZK 315 level. We believe that with over 3.5m shares changing hands, the day’s VWAP of CZK 315 suggests consolidation has already taken place and we will see strength in the days to come. We continue to see positive returns for Cesky Telecom in the near- to long-term perspective. Quarterly results reported by both Cesky Telecom and Komercni were bang in line with our as well as market forecasts, however Komercni banka tumbled toward the end of the day on international selling. Volume in the SPAD reached USD 151.9 m.
Milan Procházka, Patria Finance