The Czech market traded in a thin volume of only USD 24m on Tuesday, the PX-50 index closed up 0.17% at 785.6 points. Volumes were below average and we expect them to stay low until tomorrow when the main blue chips begin to release their respective H1 earnings. Unipetrol is likely to weaken today on the back of press reports that two representatives of PKN resigned from the Sueprvisory Board without disclosing a reason. We continue to believe though that Unipetrol's acquisition by PKN will go as planned. Cesky Telecom is likely to break through CZK 310 today, we think it is poised for mild growth; Komercni banka will remain intact at the CZK 2,600 level as some profit taking after the recent rally is still ongoing.
Note that Komercni banka and Cesky Telecom report their figures tomorrow and the other Czech blue chips on Friday. Erste Bank will report its consolidated results on August 17.
Milan Prochazka