The PX-50 index gained 1.24% yesterday in reversing Monday’s negative session. Cesky Telecom (CT) was the most closely watched and actively traded stock; it gained 1.5% to CZK 279 after Monday’s sharp drop of 14.4%. We believe CT shares will likely trade in a CZK 270-280 range over the next couple of weeks or months, or until details emerge of minority-shareholder TelSource’s international market offering of its 27% CT stake. We do not see any fundamental or trading reason to sell the stock at present. Komercni banka and CEZ also shrugged off Monday’s market weakness and rose. For today, we expect the market to gain again, with Komercni banka and CEZ to propel the market forward. Volume in the SPAD trading system reached USD 19.11 mil. yesterday.
Milan Procházka