The PX-50 index closed unchanged yesterday despite CEZ again reaching further record highs on a decent turnover. Cesky Telecom dipped below CZK 340 as we believe investors have started pricing in the potential SPO of the 51% stake in the company. Recent comments from the Czech political decision makers signal such an alternative may be an option at the end of the day. We though think investor expectations do not yet fully reflect such risk and we are surely ahead of a volatile period until the Czech government decides on the final form of the sale method. CEZ touched another record high, with buying being dominated by domestic accounts this time. We continue to see retail outflow from the stock and re-allocation into Zentiva, which has recently under performed the rest of the market. Komercni banka, Erste and Philip Morris are outside investor interest these days. Volume in the SPAD reached USD 55.95m.
Milan Procházka, Patria Finance