Share prices rebounded somewhat as the PX-50 index gained 0.17% to 537 points yesterday. Overall, trading in Prague was rather dull with volume light at only USD 11.12 mil. Philip Morris CR was led higher on domestic-driven demand as investors continue to seek the stock as it pays an attractive dividend and as the strengthening of the Czech currency against the US dollar supports the company’s profitability. Komercni banka gained 0.94% as the market ignored news related to a seemingly unfounded bankruptcy petition filed against the bank yesterday.
Looking ahead, we believe the Czech market is poised for further growth from a trading perspective; CEZ, Cesky Telecom and Unipetrol are our top stock picks.
Milan Procházka