The PX-50 index closed down 0.14% at 798.8 points on Friday. Market volumes continued to sustain average levels as only USD 24.32m worth of shares were traded. We expect a weaker opening today after this weekend's resignation of the Prime Minister and consequent fall of the entire Cabinet. The President will address the issue of the new Cabinet this Thursday. We believe though that only Cesky Telecom could be targeted by sellers on the back of the recent political turmoil as the whole privatization process is likely to be delayed by a couple of months. On the other hand there will only be a limited impact on Unipetrol as the sale to PKN has been officially confirmed by the Cabinet already and we do not expect any revision of the deal by whoever may assume power now. Also, Zentiva will start trading on the SPAD today with a board lot of 3,000 shares and maximum spread of CZK 8.
Milan Prochazka