The PX-50 index closed unchanged on Tuesday despite the sharp fall of Komercni banka. The stock gave up 2.2% of its value and traded at levels around CZK 2,500. As we warned yesterday, the market seems to be long and a lack of any near term catalyst forced some market participants to close their positions. We think many of them have already reduced positions and we may see recovery in the stock price in coming days. CEZ touched its new all-time high pushed by international demand. The momentum is still in place to také the stock to even higher price levels. Zentiva is back above its IPO price but we see no substantial demand for the stock at current levels. Volume in the SPAD reached USD 35.8m.
Milan Prochazka