Oct. 12 (Bloomberg) -- CEZ AS, the biggest power utility in the Czech Republic, led the country’s equities higher as the price of electricity and other commodities rallied and amid optimism Europe will contain its sovereign-debt crisis.
CEZ jumped 5.5 percent to 751 koruna at the 4:24 p.m. close in Prague, largest rally since February 2009. The PX stock index, in which CEZ has a 21 percent weighting, increased 2.5 percent, snapping a two-day drop. Coal company New World Resources Plc advanced 2.8 percent to 140.51 koruna, a three- week high.
Stocks and commodities rose worldwide and the euro gained after European Economic and Monetary Affairs Commissioner Olli Rehn said today the region is moving toward a consensus on resolving the crisis. Slovak parties reached agreement to approve a boosted European Financial Stability Facility this week after lawmakers failed to pass the bill yesterday.
“European stock markets resumed growth” as “the effect of yesterday’s rejection in Slovakia of the EFSF top-up evaporated during the day,” Miroslav Adamkovic, an analyst at Komercni Banka AS in Prague, wrote in an e-mail to clients. “CEZ was the star of the day” in Czech trading, he wrote.
Power for next-year delivery in Germany, where CEZ exports some of its output, increased for a third day to 56.50 euros per megawatt-hour, headed for the highest this month. Benchmark coal derivatives rose 0.3 percent to $120.85 a metric ton. A close at that level would be the highest since Sept. 30.
--Editors: Ana Monteiro, Peter Branton
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