The PX-50 index closed down 0.17% yesterday as investors took profits. Unipetrol was hit hardest, sent lower by a couple of large sell orders. The sellers likely responded to the recent news of a possible delay in Unipetrol’s privatization due to the unresolved issue with a subsidiary’s (Benzina, a fuel retailer) bank debt. Cesky Telecom enjoyed a good turnover once again and held above CZK 280; the stock remains on top of our buy list from the fundamental perspective. Volatility in Komercni banka increases, however, and we expect that the stock price will be sent lower. CEZ is well demanded at the CZK 140 level. Erste Bank continues its stellar performance and continues to gain on good 9M results of its Austrian peer (Erste is listed in Vienna and Prague); we believe that the market has now largely priced in expectations that Erste will also report strong 9M results, due Nov. 13; the stock price may therefore be vulnerable to a correction. Volume in the SPAD trading system reached USD 27.91m yesterday.
Milan Prochazka