The PX-50 index underwent a long-awaited correction on Monday, with CEZ and Cesky Telecom being the most actively traded stocks. Cesky Telecom, in particular, traded with a higher than average intraday volatility after reports that Deutsche Telekom had no plans to bid for the government-held 51% stake. Even though Deutsche Telekom had never indicated any interest in CT, the market had immediately raised the probability of selling the 51% stake via the market. Cesky Telecom traded down to CZK 320 but short covering pushed the stock back up toward CZK 327 by the close of the day. Cesky Telecom will continue to be the most volatile stock in weeks to come unless we see more clarification on the privatisation. CEZ dropped 3.70% on no news, as investors continue locking in profits after the recent appreciation. Erste Bank closed up after the market was relieved by successful placement of the 1% stake last week. For today, we expect a similar trading pattern as yesterday. Volume in the SPAD reached USD 59.88m, higher than average.
Milan Procházka, Patria Finance