The PX-50 index lost 1% yesterday on profit taking in most blue chips. The biggest loser was CEZ, which closed down 1.9% following a press report that the government may remove the CEO of this state-owned company, apparently for political reasons. Cesky Telecom lost 1.9% on mild profit taking, though volume was low. Komercni Banka, the most actively traded stock yesterday, lost 1.15% amid little buying interest after the stock’s rally last week. Unipetrol and Ceske radiokomunikace (CRa) were the only gainers yesterday: Unipetrol gained 1.8% on continued interest from local and foreign institutions, and CRa gained 2.3% on local demand.
We expect no market-moving news toady, and at present the market seems to have lost its momentum. Further profit taking is the most likely scenario for today and perhaps for the rest of the week. Nevertheless, we remain optimistic on the market in the mid-term.
Silvio Kotarac