The PX-50 index gained 0.85% on Monday as trading was spurred by the healthy recent gains posted on major European and US futures. Though volume here was only moderate, all stocks in the SPAD trading system saw prices rise. Philip Morris CR closed at an all-time high on a good volume of USD 4.73 mil. Cesky Telecom reached the CZK 280 level. Volume in the SPAD reached USD 14.12 mil.
Though share prices here may see further growth based on the good international sentiment, we do not foresee a sustainable rally.
Of the domestic equities, Unipetrol remains our prime trading pick; Cesky Telecom lacks catalyst but general story is positive; and CEZ’s price should remain firm at its current level though news of the government’s proposed flotation of a 16.60% stake in the company may weigh on the price. For Ceske radiokomunikace we await SEC approval of the voluntary buyout offer made by Bivideon, the majority owner. And lastly, we expect Komercni banka to lose ground as its current share price of CZK 2,000 is unsustainable, we believe.
Milan Procházka