The PX-50 index closed marginally up on Friday, rising 0.08% on a total volume of USD 25 mil. Most of the volume was again concentrated in Komercni banka, which closed at a 2003 high of CZK 2,376 on continued foreign demand. Cesky Telecom was Friday's biggest gainer, however, rising 2.5% also on strong foreign interest. CEZ lost 1.3% on mild profit taking.
We expect a positive session again today, though volumes might prove below average as U.S. markets are closed for the day. Investors will likely treat as positive the news that CEZ's CEO may be expected to retain his seat, but some fear a CEZ stock overhang given the possible floating of the state's 16% stake in the company. Cesky Telecom and KB will likely see continued foreign demand today and outperform the market.