The Czech market closed in the red numbers dragged down by CEZ. CEZ opened at CZK 738 level and was lifted intraday to CZK 760 but fell again on late sell-offs to finish close its day low to CZK 742. The stock was the only liquid having about 70% of total daily turnover. Komercni banka was weakly traded, but gained from levels CZK 3,200 reached in the morning. Telefónica O2 CR (Cesky Tel) slightly increased, local accounts failed to defend CZK 440, while foreign players were selling. The second-tiers outperformed market as Orco and Unipetrol posted gains.
CEZ: The Government approved sale of the state stake worth CZK 31bn, which represents about 7% of the company in order to finance 2007 budget deficit. The Ministry of Finance does not supposed sale will happened in 2006, the most likely in the first half of 2007. Sale of additional stake will continue gradually to reach up to 16% what MF announced earlier.