The PX-50 index gained 1.60% to 494.60 points on Tuesday. Prices were pushed higher by domestic and a handful of foreign buyers. Unipetrol in particular recorded outstanding gains as it traded above CZK 45, up 3.63%. CEZ, up 1.61%, seems poised to test CZK 100, a price the stock has not seen in over a year. Fundamentally, we believe that CEZ’s stock price should well exceed this level (our target price, reflecting energy-sector restructuring, is CZK 120 per share). Cesky Telecom traded on a fresh high of CZK 310.50, demand originating primarily from abroad. Volume in the SPAD system was USD 13.82 mil., which is about average for a session. Today, Philip Morris CR stock trades the last trading day with dividend and AGM rights, CEZ is likely to strengthen further, and Unipetrol should sustain its recent gains at the CZK 44-45 level. Komercni banka stock faced exceptionally thin trading yesterday, as the stock traded poorly after bank management held a conference call for analysts on Monday evening.
Milan Procházka