The government is to ask Parliament for an expression of confidence, it was announced yesterday, though the timing of such a vote was not specified. This is a reflection of the seemingly weakening power of the three-party ruling coalition, demonstrated most recently by its inability to elect a presidential candidate. A non-confidence vote could theoretically lead to new general elections. Should this scenario materialize, Cesky Telecom would be the hardest hit among domestic equities, since its restructuring and privatization would likely be postponed again. Unipetrol privatization (an advisory tender is underway) would likely loose momentum as well. CEZ would be relatively unaffected, we believe, especially now that the Anti-Monopoly Office has effectively approved energy-sector restructuring. Komercni banka, Ceske radiokomunikace, and Philip Morris CR would also likely be unaffected.
Jan Hájek