The market proved our expectation of further percentage points gains wrong. Komercni banka in particular seemed to have been poised for a further rally. The scale of the correction was however marginal and did not even offset the gains from Monday. Cesky Telecom, our favourite pick, added 0.9% on sizeable retail demand, further confirming our opinion that any price risks originating from the potential placement of the government stake have been priced in at current market levels. Today we expect narrow-range trading with price floored at CZK 330 until a decision on the sale method is taken or further clarification is released. Volume in the SPAD reached USD 56.43m.
Milan Procházka, Patria Finance