The Czech market closed down in line with the entire region. All blue-chips declined except Zentiva, which posted strong 4Q06 results. The PX Index finished close to the day's high as international accounts were active. Zentiva was the star of the day after it reported good numbers and its acquisition of a Turkish generic drug producer. CEZ fell down to the CZK 818 level at noon, but it bounced back and closed at CZK 840. We saw low volatility in Telefónica O2 CR, which reached CZK 540 and closed almost flat.
The market is likely to open higher today as Asian markets rebounded and S&P futures are trading in positive territory. The market should be strong across the whole board - Zentiva, CEZ and Komercni Banka will most probably be the leaders as they have hit the most hit in recent days. The situation in the market however is probably going to remain cautious with investors waiting to take a look at the afternoon's US macro data about productivity and labor costs.