The PX-50 index gained 0.65% to 784.3 points after Komercni banka and Zentiva posted gains exceeding 2.5% on the day. Komercni banka shot up after the recent sizeable seller stepped back from the market and the gains were also accelerated after an upgrade from a London brokerage. An upcoming buyout tender in České radiokomunikace at CZK 440 will likely force many of the investors to reallocate funds elsewhere. We believe Zentiva is the hottest candidate for such a switch. Also, outlook for strong H1 results across its peer group helped the stock to grow. We believe Zentiva is poised for further gains in coming days. CEZ traded below CZK 200, we believe the weakness is not attributable to press speculations that Russian UES is a favored bidder in Slovenske elektrarne tender, where CEZ also competes. We believe the market will consolidate today, Komercni banka is likely to trade at CZK 2,600, many of the locals will position ahead of the H1 results. We though believe results will not bring any major surprise to the market. Volume in the SPAD reached USD 32.1m.
Milan Prochazka