Bloomberg News

Erste, Komercni Lead Czech Stocks Higher on Europe Bank Support

October 06, 2011

Oct. 6 (Bloomberg) -- Erste Group Bank AG jumped a second day in Prague, the biggest one-day advance in more than a week, and Komercni Banka AS rose on speculation that the euro-area’s debt crisis will be contained.

Austria’s Erste climbed 11 percent to 496 koruna, the steepest jump on a closing basis since Sept. 26, at 11:04 a.m. in Prague. Komercni, Societe Generale SA’s Czech unit, advanced 3.5 percent to 3,380 koruna. Those movements pushed the PX equity gauge, where Erste and Komercni have a combined 39 percent of the weighting, 3.6 percent higher to 931.9.

Financial firms were among the biggest gainers as European shares rose while investors awaited the European Central Bank’s decision on interest rates and amid speculation that policy makers are working on plans to recapitalize banks. BNP Paribas SA, Credit Agricole SA and Natixis rose after Le Figaro said the French government is working on a contingency plan to take stakes in the country’s lenders.

--Editors: Linda Shen, Chris Peterson

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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