The Czech market has witnessed one of the most volatile trading session yesterday as CEZ managed to trade with almost 8% intraday volatility. Even though the market was under the selling pressure in the morning as local investors anticipated the correction to continue, the market soon bottomed up and shot back up.
CEZ broke the new all-time high level on combination of short squeeze among locals and some of international buying. We expect to see CEZ to be demanded today again. Unipetrol gained 3% as situation regarding privatization was calmed by government officials and most of the speculation was dismissed. Komercni banka continued to be well offered by London sellers, Cesky Telecom will consolidate around the CZK 310 level, but we believe it lacks catalyst in the near term.
Results of Unipetrol (due today) are not likely to be engine behind the stock’s future as it is completely influenced by privatization related news. Should the results be substantially out of the market range of estimates, we dare to believe any volatility would be short lived. Volume in the SPAD trading systém reached USD 59.75m.
Milan Procházka, Patria Finance