(Updates with closing price in second paragraph.)
Sept. 29 (Bloomberg) -- Komercni Banka AS, the Czech unit of Societe Generale SA, rose for a third day amid speculation declines earlier this month were overdone and as JPMorgan Chase & Co. reaffirmed its “overweight” rating on the stock.
Komercni rose 3.1 percent to 3,455 koruna at its 4:24 p.m. close in Prague, the highest level in almost four weeks. The shares gained 16 percent this week, paring September losses to 2.1 percent. The Czech PX gauge of companies rose 0.7 percent.
Global stocks rose as U.S. data showed jobless claims fell more than forecast last week and the world’s largest economy grew faster than estimated in the second quarter. German lawmakers approved the expansion of a bailout fund for debt- stricken euro nations. The Czech index fell to a 29-month low on Sept. 23 amid concern the region’s debt crisis is spreading.
“Komercni has been recovering from a sell-off at the end of last week, which was worsened by forced stop-loss trades and the market’s declines were overdone,” Milan Lavicka, an analyst at J&T Banka AS in Prague, said by phone today. “Sentiment toward the banking sector has improved. German parliament passed the fund top-up, and that may bring at least some relief.”
JPMorgan called the stock’s recent decline an opportunity to buy, and reduced its earnings forecasts for Komercni. The Prague-based bank’s share-price estimate was cut to 4,200 koruna from 5,052 in JPMorgan’s report to clients today.
“Trading today has been helped by JPMorgan, which reduced the target price but still has Komercni on ‘overweight,’ ” J&T’s Lavicka said. He has a “buy” rating on Komercni shares.
The Prague Stock Exchange was closed yesterday for a public holiday.
--Editors: Linda Shen, Peter Branton
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