The Czech market continued loosing ground as ongoing book building for a 27% stake in Cesky Telecom by TelSource entered its final day on Thursday. The PX-50 index closed down 1.14% at 614.4 points. Only Cesky Telecom remained in positive territory after reports that demand for the stock is strong and after series of brokers´ upgrades. Cesky Telecom traded upward at the CZK 260 level toward the close. Komercni banka, Erste Bank and CEZ were under pressure as accounts raised cash for possible participation in the Cesky Telecom deal. Selling was heavy. In coming days, we expect an upward correction as strong demand will counter share-overhang issues regarding Cesky Telecom, and we expect buyers to return into Komercni banka and CEZ as well. CEZ should also trade up after positive comments from its CFO on expectations of good 2003 results. Volume in the SPAD trading system was an above-average USD 50.3m yesterday.
Milan procházka