Cesky Telecom will enter the Central European Stock Index in Budapest as of November 2, while Komercni banka is to be removed. The inclusion of Cesky Telecom in the index may be positive as investors following the index will have to add CT into their portfolios; the opposite holds for KB.
Separately, according to the National Property Fund's Vice-chairman, the Ministry of Finance should tomorrow (22 October) review a proposal on the privatization of CT submitted by the Government's privatization advisor CSFB/CS. The Cabinet should make a final decision on the privatization form (a tender or via capital markets) in mid-November. Source: CIA News. However, we do not expect any information regarding the Ministry's position to be released, as there is no public statement scheduled.
Tomáš Gatěk, Patria Finance