The PX-50 index gained 0.17% to 847.4 points on Wednesday, with Cesky Telecom in the investors´ spotlight. It lost 2.31% of its value after reports that the CEOs of CT and of its wireless arm Eurotel had clashed and that Eurotel CEO Valeski will be forced to resign. Investors are slightly worried that dispute between the two managers, both of whom are well regarded by the financial community, will put even higher sensitivity on the upcoming privatization of the government-held majority stake. The Supervisory Board of CT meets today, but we believe that any outcome will have limited material impact on the stock and volatility based on this news will be short-lived.
Komercni banka gained 0.40% on international demand and it is currently the only domestic stock in which we see natural flow. CEZ continues to be well supported by domestic accounts ahead of Q1 results next week, while the CEZ CEO encouraged optimists by saying the results will be "very satisfying". The Unipetrol story is nearing its conclusion as the deadline is due tomorrow - the market is full of reports and speculations, but we advise to BUY ahead of the announcement. Volume in the SPAD systém reached EUR 38.5m.
Milan Prochazka