The PX-50 index closed virtually unchanged yesterday at 516.20 points, down by 0.06%. Cesky Telecom traded in a notably higher-than-average volume (more than 600,000 shares were traded), being well demanded by international buyers. Komercni banka led in terms of volume, a substantial part of which was generated by local investors who seem to be trying to get back long into the stock. CEZ was up yesterday, reaching CZK 106 on a good volume. Volume in the SPAD system reached USD 23.89 mil. (better than average) yesterday.
We believe that the Czech market may yet face a correction in the coming days, but that the prices of CEZ, Cesky Telecom, Philip Morris CR and even Erste Bank stock stand to rise further over the near term. On the other hand, we believe that Komercni banka and Ceske radio will be the main laggards of the market.
Note that next week several national holidays in central Europe will see stock exchanges in Prague and Warsaw closed on May 1st, PSE also on May 8th, and the Budapest Stock Exchange will be closed on May 1st and 2nd.
Milan Procházka