Czech Equity Daily: 20/08/10; CME

Index PX: 1,188 points (up 0.3% d/d); volume: CZK 2,405m (USD 125m)

Market comment

The PSE went through an interesting session yesterday as activity significantly picked up and traded volumes exceeded CZK 2bn. Buyers prevailed in the first half of the session, focusing on Telefonica, which after six down days aimed at CZK 440 and its traded volumes represented almost half of all volumes traded on the PSE. Also Komercni banka surged to CZK 4,180 almost without any resistance. The sentiment in Europe was improved by a GDP outlook issued by Bundesbank, which raised 2010 GDP forecast to 3.0% (from 1.9 %). However, after the release of the worse-than-expected weekly US jobless claims at 2:30 p.m. CET and of the Philadelphia Fed Index, which measures regional manufacturing growth, at 4 p.m. CET, European markets succumbed to the bad news and closed down about 1.5%. Markets in Central and Eastern Europe did not record such deep losses, however, especially thanks to large buy orders. The PX Index eventually maintained the early gain, closing up 0.3%. Telefonica (+0.23%) finished at CZK 435, Komercni banka at CZK 4,130 (+0.7%). Unipetrol was the winner with a 3.4% gain (CZK 228.4). Erste Bank lost 0.5% and CME closed down1.0%.

CME: Negative (Analyst: Milan Lavicka)

According to a report filed with the US Securities and Exchange Commission, the CEO of CME Adrian Sarbu sold 70,217 shares of the company. The sale was carried out from 17 to 19 August at USD 22.46 – 22.89/share. The reason of the sale is not known; however, a sale of a relatively large amount of shares by top management may cause certain nervousness on the market.

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