The PX-50 index dropped 1.27% after banking stocks recorded another wave of large-scale selling. However, contrary to the recent session, we became a net buyer of Komercni banka at lower CZK 2,400 levels. Yesterday however, investors even sold-off Komercni banka´s regional peers, Erste Bank and OTP and even Polish banks were sold better yesterday. We think the idea behind the sell-off could partly be due to the upcoming USD 1.50bn IPO of the largest Polish bank, PKO BP and also following the weakness across the pan-European banking universe. CEZ dropped below CZK 200, but again the stock is finding support there and we continue to believe it will maintain or even add to the current price levels. Main Czech blue chips report H1 results in the second half of the next week. Volume in the SPAD reached EUR 30.5m.
Milan Prochazka