Czech Equity Daily: 18/10/10; NWR

...about CEZ, which recorded half the volume traded. After positive opening the stock declined to CZK 776, where most trades were carried out, but in the last hour sale orders pushed it to CZK 770. CEZ's CEO reassured investors that the completion of Temelin was number one priority and its success would lie in careful preparation of the project. Investors focused also on Komercni banka, which fell on above-average volumes from CZK 3,943 to CZK 3,925 (-0.6%). Erste Bank climbed from CZK 772 (+0.3%) to CZK 781.3. Negative sentiment was seen in the US banking sector following speculations of investigation of foreclosures, which could harm large banks. However, banks were the weakest also in Europe and their fall overshadowed the better-than-expected US retails sales and Bernanke's speech. NWR followed other mining companies, losing 1% (CZK 220). Telefonica (CZK 387) was the star of the day, when it showed big upside potential even after USB lowered its target from CZK 430 to 420. The PX Index closed flat. NWR: Positive (Analyst: Bohumil Trampota) NWR will not raise the offer price for Polish Bogdanka, said CFO Marek Jelinek for Polish daily Parkiet. The offer for 100% of the Polish mining company at PLN 100.75/share was made on 6 October . According to Jelinek, the price is fair and if investors decline it, NWR will withdraw from the offer. We also believe the price fair and therefore we consider the news positive. Investors should appreciate that NWR is not willing to overpay for potential acquisitions. NWR has announced the prices for coking coal and coke for 4Q10. The 4Q price for coking coal has been agreed at EUR 154/tonne, which represents 3% decline from 3Q10 prices. The price of coke for the same period stands at EUR 331/tonne, or 9% below 3Q10 prices. The respective sales represent 20% of production because NWR sells 80% of coking coal volumes on a Japanese fiscal year basis. Coke is sold on a quarterly basis and thermal coal on a calendar year basis. A slight decline in 4Q10 prices was expected. NWR's chief operating officer had said earlier that that the price of coke would slightly decline. Major market players have already lowered prices for 4Q10 by 7.1%. ed_101018