The PX-50 index gained a further 0.78% to 629.4 points on Monday; price volatility remained low. Cesky Telecom traded at CZK 280 with some profit taking as the stock has gained 10% since TelSource's placement in early December. CEZ gained after a brokers' upgrade and comment from the CEO of E.ON who said that the German utility had EUR 13.6bn for further expansion, some possibly in EMEA. This raises hopes among locals that CEZ will be easily privatized. However, we see this as an outlook to a relatively distant future and we would not buy on the back of this news. Volume in the SPAD trading system reached EUR 18.6m yesterday.
Milan Procházka