The Czech market erased morning’s loses thanks to a positive move of all markets except Hungary. Unipetrol became the biggest gainer for the second day in row on the back of speculation of a superb 2Q06 results which will be reported on Friday (August 11). Komercni banka (KB) showed a good performance after rumours that its mother company Societe Generale will be overtaken by Citi Group. CEZ finally strengthened, but there was increasing selling pressure above CZK 818 level. Telefónica O2 CR did not follow today’s telecom rally, when we saw mixed sellers. CZK currency trades close to all time high versus EUR (28.09 CZK/EUR). The Crown is supported by the record high the foreign trade surplus.