The PX-50 index broke through its all time high of 700 points as strong demand for Cesky Telecom pushed the Czech market along. Cesky Telecom gained 3.8% despite news that the company has been fined app. CZK 82m for abusing its market position. The stock traded in a high volume exceeding 2.3m shares, with buyers mostly from London. The stock will test the 300 level today - we believe it will not have a major problem breaking through and expect Cesky Telecom to trade well above that line.
Komercni banka was well bid but sustained its price levels from day before, with local sellers helping the stock to remain almost unchanged at CZK 2,685. We expect Komercni banka to accelerate its gains as well in the coming days. We expect CEZ and Erste Bank to remain the laggards of the local market. We continue to advise selling shares in Philip Morris CR as we view current levels as overpriced given company fundamentals. Volume in the SPAD trading systém reached solid USD 56.4m.
Milan Procházka, Patria Finance