Czech equities as measured by the PX
Index were up 2.5% for the week to close at 1,754.2. The overall volume of trading on the PSE reached USD
619.7m, 27.2% below its 12M weekly average of USD
The main Prague benchmark, the PX
Index, reached an all-time high, however the activity was low due to the Easter holiday. The best performance, a gain of almost 9%, came from Telefonica O2
CR. The stock rallied strongly after one broker upgraded its target price to CZK
750 from CZK
650 and the stock proceeded to move up to record levels. CEZ was the most traded listing and on international interest gained 2.4%. Zentiva
’s target price was upgraded by a domestic broker to CZK
1,700, with their Buy recommendation remaining unchanged. Komercni banka was under pressure from international investors. Both new listings on the PSE, the developer ECM and Pegas Nonwovens
increased by the same amount - 3% - on interest from foreign investors. Orco
finished slightly in the red, despite the fact that our analysts increased their estimate of fair value to EUR 140.9 per share.
For this week, we don't expect to see any major corporate news as a catalyst for the market. Thursday, April 12 is the last day when Philip Morris
CR trades with dividend rights. Based on the fact that PM
CR pays out 100% of its non-consolidated earnings, the dividend from 2006 should reach about CZK
600 per share.