The PX-50 index showed a powerful rally yesterda

The PX-50 index showed a powerful rally yesterday, adding 2.53% to approach the 900 level again. This strength followed another in a series of broker upgrades; this time it was a favourable report on CEE Banks by a prominent US bank. Komercni banka rallied over 5.0% intraday on heavy volume with both domestic and international accounts active. CEZ,traded in a similar pattern with a 4.6% gain at the close. Part of the gains could perhaps be attributed to the reinvestment of a Cesky Telecom dividend paid out today (a total of USD 100m. should be returned to shareholders today). Cesky Telecom underperformed the market; it seems that investors are already positioned ahead of any potential announcement on the sale of the 51% stake. We reiterate our view that placement is priced in at current levels. Volume in the SPAD reached USD 44.22m.

Milan Procházka, Patria Finance