The PX-50 index gained 0.40% to 781.8 points on Wednesday. Gainers were led by CEZ, which added 1.7% on the day, driven mostly by international demand. The strength of the stock follows recent upgrades by international brokers and by some accounts switching away from Komercni banka. A Komercni banka AGM is approaching and the bank should shortly announce its dividend proposal ahead of the meeting. In this regard we see a general conviction that KB could exceed market estimates as to the amount of dividends to be paid out. Philip Morris CR fell below the CZK 15,000 level on continued domestic selling; the current estimated dividend yield in the stock exceeds 11%. Next week Zentiva should disclose further details on the pricing of its upcoming IPO - we do not expect any tangible outflow from other titles ahead of the sale. The market will continue to trade with moderate activity and we continue to believe that it is still inclining toward higher-than-average volatility. Volume in the SPAD trading systém reached EUR 27.5m on Wednesday.
Milan Prochazka