The PX-50 index gained 0.39% to 537.2 points on Tuesday. Philip Morris CR rose 2%, some of the investors seem to be short squeezed, and there are only a handful of sellers active in the stock. Unipetrol rose by over 3% after the market shrugged-off reports of a possible share placement by one of the municipalities. CEZ was down as much as 3% intraday yesterday as foreign sellers were active given reports that the government intends to float 16.60% of the company’s shares (the state is the 68% stakeholder in CEZ). Our short-term outlook for the Czech market remains cautious, as we see no near-term catalysts for equities, though Unipetrol and Ceske radiokomunikace could be driven privatization-related and EGM news, respectively. Volume in the SPAD trading system reached USD 16.23 mil. yesterday.
Milan Prochazka