The Czech market opened strongly yesterday, but corrected soon after with selling by London accounts. Still, the PX-50 index managed to close virtually unchanged at 751.6 points thanks to CEZ, Unipetrol and Erste Bank. We continue to see a strong seller in Komercni banka, though we still anticipate the stock to rebound well above CZK 2,800 as the release of FY results nears. We lack a catalyst for further growth in Cesky Telecom and expect its consolidation at the CZK 300-310 level. In CEZ, although we do not anticipate a sell-off, we are discouraged by recent government comments regarding a lower dividend payout. The market will continue to be highly sensitive to privatization related news in Unipetrol. Volume in the SPAD trading systém reached USD 48.4m yesterday.
Milan Procházka, Patria Finance