The Prague Stock Exchange managed to erase some of the losses from recent sessions and the index PX-50 rose yesterday by 0.84% on total volume of USD 13.8 mil. The biggest gainers were CEZ, Philip Morris CR and Cesky Telecom. CEZ gained on renewed foreign buying ahead of the release of its audited 2002 IAS results, which is expected next Tuesday and which are generally expected to be strong. Philip Morris CR gained 1.2%, its price again bolstered by Parliament’s rejection of a government bill to raise excise taxes on cigarettes. Cesky Telecom gained 1% on continued foreign demand. KB was essentially even yesterday and closed the session with a minor decline of 0.15% At present, it looks like KB has managed to find short-term support as selling pressure eases in the stock. The major loser yesterday was Ceske radiokomunikace as investors seem disappointed by the results of its AGM, and there are also some worries that the company could overpay for a 50% stake in Contactel (see below). We expect a positive session today with low volumes as the PSE is only one of few European stock-exchanges open today. We expect KB to outperform the rest of the market, while Ceske radio could see its price weaken again.
Please note that the PSE is closed on Monday, April 21, due to a public holiday in the Czech Republic (Easter Monday).
Silvio Kotarac