Bloomberg News

Komercni, Erste Lead Czech Stock Rally; NWR Drops on Coal Price

October 27, 2011

Oct. 27 (Bloomberg) -- Komercni Banka AS, a unit of Societe Generale SA, and Erste Group Bank AG led Czech stocks to a six- week high after euro-area leaders agreed to expand a bailout fund, outweighing a drop at New World Resources Plc.

The PX equity gauge jumped for a fifth day, headed for its longest stretch of gains in seven months. The benchmark rose as much as 1.5 percent to the highest level since Sept. 16, and traded up 1.1 percent to 962.8 by 10:16 p.m. in Prague.

Stocks rallied in Europe and Asia and the euro gained after French President Nicolas Sarkozy said the bailout fund will be leveraged by four to five times, and investors have agreed to a voluntary writedown of 50 percent on Greek debt. The euro area is the main market for Czech exports.

Austria’s Erste climbed 4.1 percent to 432.1 koruna, in a fifth day of gains. Komercni rose 1.7 percent to 3,619 koruna.

NWR slid 0.7 percent to 144 koruna. The Czech Republic’s biggest producer of coking coal said today it agreed with customers to deliver the commodity in this quarter at an average price that is 9 percent lower than in the previous three months.

--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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