The sharp sell-off occurred shortly after Komercni banka reported its Q1 results substantially below market and our estimates. As a result, KB fell 7.5% on the day with substantial presence of international accounts. We had not seen a single buy order after the results and expect further weakness soon. CEZ, on the other hand, delivered a strong operational report. Almost USD 22m FX loss in Q1 seemed not to worry the market. Cesky Telecom seems to have absorbed the recent tensions in its management and its mobile subsidiary. We expect no particular price swings here. Unipetrol will continue to be traded with CZK 80 support. Domestic retail accounts continue offloading stock in decent sizes as they collect profits after the strong surge. The volume in the SPAD systém reached USD 106.9m.
Milan Procházka