The ruling Social Democrats hold a party assembly this weekend, where Prime Minister Vladimir Spidla’s position as party leader is expected to be challenged. If so, this could result in significant changes in the ruling coalition and the Cabinet, or even in a political crisis.
Should Mr. Spidla be ousted, which seems unlikely at the moment, the Czech koruna would be negatively affected, and as for politically vulnerable equities, the state-owned Unipetrol, Cesky Telecom and CEZ would be the most exposed stocks on the PSE to any politic instability due to their privatization (current in Unipetrol, planned in CEZ and Cesky Telecom) or restructuring (Cesky Telecom).
Jiří Soustružník