The PX-50 index rose marginally yesterday, up by 0.10% to 506.20 points. Prague traded in line with our forecast of light activity and with almost no change in the base index value. CEZ was the most actively traded stock yesterday as investors evaluated Friday’s report of the Cabinet’s plan to float 16% of the state-owned company. Though no further details have emerged, the potential stock overhang will weigh on CEZ’s stock price regardless of the otherwise positive news flow related to the utility (energy-sector restructuring, in particular). Komercni banka lost 1.70% on foreign selling, and we believe the stock has further downside potential in the near term. Cesky Telecom shot up 1% in late-afternoon trading. Philip Morris CR announced a CZK 1,448 per share dividend at its AGM yesterday, matching our forecast. Overall, the traded volume in Prague stood at USD 23.2 mil. yesterday. Today, despite the positive closes of US markets last evening, Prague will more or less seek its own direction.
Milan Procházka