The PX-50 index lost 1.25% to 467.4 points on Monday, led down by CEZ, which lost 4.70% to CZK 92.50. News from yesterday’s EGM at CEZ surprised the market as the state National Property Fund, the majority stake holder in CEZ, voted to delay the intended sale of a 66% stake in CEZ’s transmission-grid operator, CEPS, to the state; the sale of the stake in CEPS to the state was a component of the government’ energy-sector restructuring. While the situation remains unclear this morning, we believe that investors will continue off-loading the stock, since we believe the recent rally of CEZ stock was mainly due to expectations of this transaction. Other names traded without special interest, with mixed results. Total volume reached USD 13 mil. Today, CEZ will see continued selling pressure.
(Milan Prochazka)