J&T Banka Czech Morning Note: 03/07/18; CEZ
Index PX: 1,071 points (up 0.6% d/d); volume: CZK 606m (USD 27m)
The first week of the new quarter we experienced a very interesting session. And despite a shorter week due to public holidays on Thursday and Friday. CEZ (+3.13%) shares declined after the opening to just below CZK 515. However, CEZ erased losses immediately, suggesting either the fat finger, or an order at market. However, the rising price of electricity has suported CEZ and it became the winner of the day. Speculation about M&A target lifted Moneta (+1.7%). Komercni banka (+0.96%) benefited from rising interest rates. The main PX Index significantly exceeded the global stock markets. On the other side of the spectrum were the Austrian Erste Group (-0.84%) and VIG (-0.99%) which traditionally correlate with the outside world. Pegas also declined (-0.88%).
CEZ: Negative. LT: Buy. Target price: CZK 568
According to CNB, Member of the Board of Directors of CEZ Ladislav Stepanek sold 58,066 shares. Share sales by top management members are usually not perceived positively by investors.
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