The PX-50 index witnessed another powerful rally yesterday as banks continued to benefit from investors’ appetite. Erste gained over 4%, while Komercni gained over 2.58% on heavy volume and broad market interest. The two banks followed a similar pattern across the region. We believe investors are pouring excess cash into EMEA banks with fears of a substantial scale back in the upcoming IPO of the Polish PKO BP. Komercni banka in particular was well bid toward the end of the day suggesting demand may be ongoing. CEZ benefited from a broker upgrade to its target price. Zentiva, surprisingly, despite positing solid 9-month results on Monday, has limited sellers at CZK 640 levels though it still managed to close the day in positive territory. Cesky Telecom awaits further details regarding the sale of the 51% stake; we expect consolidation in the CZK 325-330 range until further clarification is released. Volume in the SPAD reached USD96.83m.
Milan Procházka, Patria Finance