The PX-50 index closed up again 0.87% on Wednesday as CEZ continued in what seems to be an unstoppable rally, adding a further 2.40% on heavy volume with in excess of USD 34m worth of shares changing hands. The appetite of international investors was recently accompanied by domestic funds, which reduced much of their holdings in the stock at levels close to CZK 200 per share. Komercni banka and Cesky Telecom traded up in sympathy with other markets. We expect yesterday's comments by the Prime Minister regarding the Cesky Telecom sale method to weigh on the stock price. Nonetheless, his comments should come as no surprise as the public offering is already one of the considered options, even if not entirely priced in. Volume in the SPAD reached USD 63.52m.
Milan Procházka