The PX-50 index saw a roller coaster day yesterday after Komercni banka and CEZ traded with intraday volatility range of almost 4%. Komercni touched the lower 2,900 levels and CEZ saw CZK 262 levels in selling which was not based on any fundamental news. We had a number of London-based accounts trading the two names on an intraday basis. Initial short sellers benefited from low volume in the morning hours and a lack of any corporate or natural flow. Short covering then helped to push the market higher towards the end of the session. Zentiva is seeing good volume at slightly below the CZK 600 level. We think that it will test that level in the near term with some resistance from domestic institutional accounts. However, breaking through CZK 600 could spark some more momentum buying. Volume in the SPAD system reached USD 81.35m, better than average.
Milan Procházka, Patria Finance