The PX-50 index gained only 0.05% to 642.8 points yesterday in the midst of uninspiring trading yet again. The local market lacks domestic catalysts, and local investors seem to have lost the appetite to trade. Therefore, Czech shares are sentiment-driven again, and largely follow developments abroad. We reiterate our view that Cesky Telecom (CT) remains a key play in the Czech market from a fundamental point of view. Developments of late seem to suggest that CT minority shareholder TelSource will make its planned secondary public offering within the next couple of weeks. The matter of the SPO weighs heavily on CT’s stock price, which currently offers a decent upside potential to our estimated fair value of CZK 330 per share. Traded volume in SPAD trading system was USD 22.75m yesterday.
Milan Procházka