The PX-50 index lost 3.46% yesterday after Cesky Telecom (CT) lost a massive 14.40% of its value. CT closed at CZK 274.75. The sell-off occurred after minority shareholder TelSource announced its intention Friday evening to place its 27% stake on the market. The large part of the activity in CT shares yesterday consisted of stop-loss orders, though buyers were active at below CZK 280. Swisscom, a 49% shareholder in TelSource, attempted to calm investors fears by saying that TelSource is in no rush to sell the stake. We believe that TelSource should be able to sell its stake at a value near CZK 270-280 per share. We maintain our fundamental view of CT stock, with a fair price estimate of CZK 330, and though overhang issues will likely persist for the next couple of months, we see buying opportunities at such depressed share-price levels. Komercni banka and CEZ lost over 1.50% in concert with CT yesterday. Total volume in SPAD trading system was above average at USD 54.91 mil.
Milan Procházka