The PX-50 index was up a sharp 1.50% yesterday on strong demand for Czech blue chips. Komercni banka attacked the CZK 2,200 level, CEZ closed at a new high of CZK 128.20, and Unipetrol retook CZK 60. The market’s strengthening was not affiliated with any particular news; it more likely followed the positive recent sentiment on Polish and Hungarian markets. Volume in the SPAD trading system was high at USD 29.78 mil.
Though Prague will likely see a technical correction in stock prices in the coming days, we expect further market growth on the whole. We also expect to see Cesky Telecom’s share price rise. While investors still fear a stock overhang, its fundamentals are good and we see the title as a top pick in the days ahead.
Milan Procházka