The PX-50 index closed up 0.71% at 797.2 points on Tuesday with the market being strong across the board. Komercni banka was the only stock to see an outflow of money. The rest of the market continued to be better bid. CEZ added over 1% on the day after the news that the company hiked the 2005 electricity wholesale offer by more than expected; investors seem to have shrugged off fears of the potentially costly acquisition in Slovakia. Nonetheless, despite the positive and encouraging news from the electricity pricing, we fear that substantial acquisition premiums represent a threat to the stock price. Zentiva touched new lifetime highs after a series of initiations. Cesky Telecom broke through CZK 335, although we see a limited upside in the stock with regards to the upcoming privatisation and the yet unknown sale method. We will be watching out for Unipetrol as there is expectation that IOC will not exercise its call option for a 51% stake in Ceska rafinerska shortly. Volume in the SPAD reached USD 29.6m.
Milan Procházka, Patria Finance