The PX-50 index closed down 1.30% on domestic political worries. Komercni banka dropped almost 3% on the day as a couple of sell orders hit the market. The current political woes are likely to impact Unipetrol and Cesky Telecom in coming days. These two should be sensitive to any news related to the destiny of the current Cabinet as privatization processes for both are underway. While we do not believe there is a real risk of revision of the sale plans as such, possible Cabinet changes would likely delay such plans. Of the two, this would particularly concern Cesky Telecom. The market will continue trading in a narrow range and volumes are likely to remain moderate in coming days. Volume in the SPAD reached EUR 18.5m.
Milan Prochazka