The Czech market recovered yesterday ahead of earning releases (PX-50 index +1.5%)

As we expected, the Czech market recovered ahead of earnings releases by Czech blue chips. The results are generally expected to be upbeat; we especially favor Komercni banka to come out with a positive report tomorrow. Unipetrol gained 3.2% after reports that KazMunaiGaz has teamed up with Shell to submit a joint bid for the state's 63% stake, which may increase pricing competition in the deal. Philip Morris CR shot up 3.9% on speculations of a minority-shareholder buy-out after rumors that Philip Morris bought out minority shareholders in Turkey. We anticipate a further recovery by Czech names today and fresh records. Volume in the SPAD trading systém reached USD 46m.

Milan Procházka, Patria Finance