Czech equities, as measured by the PX Index, moved up by 1.4% to close last week at 1,515.1. The overall volume of trading on the PSE reached USD 626.3m, 16% below its 12M weekly average of USD 745.6m. The best stock of last week was CME, which gained almost 8% and followed along with the superb performance of its US trade line. Both banks strengthened. Erste Bank (EB) reached an all time high and was supported by speculation concerning acquisitions in the banking sector and by its CEO comments. Morgan Stanley placed 700,000 shares for EUR 52 per share at the beginning of last week.
CEZ reached its high of the last couple of months supported by international investor buying. Philip Morris managed to maintain the CZK 11,000 level. Zentiva was off by about 2% - most likely influenced by the fall off of its Hungarian peers, which was in reaction to the upcoming new decree on drugs. The 3Q06 reporting season starts this week. Telefonica O2 CR will be kicking it off on Friday.
Philip Morris' parent company Altria will announce its 9M06 earning on Tuesday. In the middle of the week, CEZ’s shares should be listed on the Warsaw Stock Exchange. Also, the CNB holds its board of governors meeting with interest rates on the agenda.