The PX-50 index closed flat on Friday at 691.9 points, with Komercni banka and CEZ dominating the trading. Komercni banka traded with substantial intraday volatility and broke the important resistance level of CZK 2,600 - we believe it will sustain its current upward trend. Almost 2m shares changed hands in CEZ, which was well bid by international accounts. The market seems to be pricing in a possible SPO of a government's minority stake (16%) in CEZ; despite recent comments in the press we do not believe the government should reach a final conclusion soon, i.e. a possible placement is not imminent. We remain buyers in Komercni banka and Cesky Telecom. Volume in the SPAD trading systém reached USD 35.3m.