The PX-50 index gained 1.04% to 845.70 points yesterday. Komercni banka dominated the trading, breaking through the CZK 3,300 level and managing to close at CZK 3,329. Komercni banka continues to benefit from a strong appetite for EMEA banking shares, the gains following a strong demand for shares in its Hungarian peer OTP Bank. Cesky Telecom opened at CZK 353 after one local weekly reported that Deutsche Telekom has expressed interest in a majority stake. Nevertheless, the market soon realised that the news had no real background. We saw demand at the CZK 345 level, but our net flow in the stock is on the sell side. CEZ seems to be set to test CZK 200 level: there is no news in the pipeline but renewed interest among larger domestic accounts signals that it will go higher. Despite the number of shares in our research universe trading well above our estimates of their respective fundamental values (Komercni banka, Erste Bank, Philip Morris CR etc.), the upward trend is likely to continue, with no substantial correction of the market in sight (yet). Volume in the SPAD trading system reached USD 48.75m.
Milan Procházka, Patria Finance