The PX-50 index closed up 0.75% on Monday helped by CEZ and Erste Bank. CEZ added 1.77% after the Prime Minister's comments against the possible floating of a 16% stake in the near term. The stock still faces important resistance at the CZK 200 level, though. Erste added 1.40% ahead of its H1 report today. Cesky Telecom maintained CZK 330 after last week's news that Vodafone is considering a bid in the upcoming privatisation. Even though the news has no material impact on the stock price, the whole privatisation process has now received further credibility points. We expect further similar news in coming weeks, giving support to the stock price as overhang fears are now on the sidelines. Volume was lower than average yesterday with only USD 16.31m worth of shares being traded in the SPAD. We do not expect any substantial pick up in activity today.
Milan Prochazka