The PX-50 index gained 0.54% on Friday with volume well exceeding long-term averages (vol. in the SPAD segment reached USD 78.82 mil.). CEZ once again dominated trading as investors awaited the results of the Slovenske elektrarne tender. We saw contradictory media reports on the eventual buyers. CEZ gained over 3.80% on a volume exceeding USD 52 mil. worth of shares changing hands. However, it was mostly domestic accounts that were behind the strength this time. The Slovak commission then recommended Enel as the tender winner, with CEZ scoring second. The deal however must still obtain Cabinet approval. The announcement came after the market close and therefore its impact is not priced in yet. We believe that mostly domestic retail names will be disappointed by the result of the tender. Nonetheless we feel relieved that CEZ confirmed its previous comments that it would not bid too aggressively.
Milan Procházka, Patria Finance