The PX-50 index closed unchanged yesterday at 837.60 points

The PX-50 index closed unchanged yesterday at 837.60 points, with CEZ dominating in terms of volume and market activity once again. The volume well exceeded its average as over CZK 1 bil. worth of CEZ shares were traded. The stock continued to be well bid by London accounts, while locals continued to be net sellers on the day but still could not outweigh demand. The intraday range reached CZK 214.40-221.90. The stock initially weakened after press reports that CEZ may win the Sloveneske elektrarne tender but this weakness was followed by sizeable buy orders which lifted the stock back to CZK 220 levels. We view the Slovenske elektrarne deal as a key factor for the stock’s performance in the near term.
Cesky Telecom faced CZK resistance at 345. The rest of the market traded in low to average volumes, with no significant news flows. CEZ will once again be in spotlight as it awaits the results from Slovakia; we expect rest of the market to trade in a narrow range with locals continuing to take profits. Volume reached USD 56 mil.

Milan Prochazka