The company gained 3.30% after an upbeat note from a London brokerage recommending buying EMEA pharma stock; more importantly though we saw substantial demand from the derivative desks hedging Zentiva's addition to the Vienna-based CTX index series. We believe Zentiva will break the CZK 600 level in the near term. Investors seem to have completely shrugged off worries about the potential placement of Cesky Telecom shares. Even though we reiterate our view that the market absorption of Cesky Telecom shares is strong and that the discount on the current market levels - should the government stake be floated - would be marginal, we would expect a trading range prior to any clarification on the sale method with an upper limit of CZK 345. CEZ may suffer on technical trading as market makers decided to cut NMS to 10,000 shares from 20,000, although we believe any impact or increased volatility from this change will be short-lived. Volume in the SPAD reached USD 51.94m.
Milan Procházka, Patria Finance