The PX-50 index gained 1.02% with a powerful rally after Komercni banka and Cesky Telecom posted their respective H1 results. Komercni banka shot up 3.40% after reporting results that matched market expectations. We believe much of the buying was short covering. Volume was extraordinarily high, reaching USD 39m. Cesky Telecom posted a strong set of figures but managed to close up only 1.30% on the day. The figures beat all market estimates but investors perhaps view the expected sale of the state's 51% stake as a more prevailing factor. We expect narrow-range trading in the stock again at the CZK 320 resistance level, but the results provided us with a lot of comfort. CEZ traded at around the CZK 200 level, but volumes are insignificant. Zentiva continues to perform strongly; we attribute its gain yesterday to the stellar results of its peer, Gedeon Richter of Hungary. Today's results are likely to help the stock rise higher. Volume in the SPAD reached USD 54.9m.
Milan Prochazka