The PX-50 index hit its highest level since September 2000 yesterday

The PX-50 index gained 1.40% to 542.30 points yesterday, the third consecutive day of growth, hitting its highest level since September 2000. While Komercni banka dominated volume leaders again and added 2.07%, Cesky Telecom was among the most actively traded stocks. It added 3.01% to CZK 342 after a government official hinted that a dividend might be forthcoming from the state-owned telecom (see below). Buying in Cesky Telecom was partly a short squeeze but mostly natural. CEZ attacked a new high and traded above CZK 111. Both Cesky Telecom and CEZ are trading at one-year highs. Overall, volume was better than average and stood at USD 25.63 mil. in the SPAD trading system.
For today, we think some locals might consider taking profits ahead of a national holiday tomorrow (the market will be closed; trading resumes on Friday), but on the other hand we do not see any reason for a sharp correction.

Note that May 08 is a national holiday in the Czech Republic.

Milan Procházka