Bloomberg News

Czech Shares Jump Most in 2 Months as Fed Cuts Dollar Swap Rates

November 30, 2011

Nov. 30 (Bloomberg) -- Komercni Banka AS and CEZ AS led the Czech stock index’s biggest rally in two months after the Federal Reserve and five central banks cut the cost of dollar funding to help ease Europe’s debt crisis.

The PX equity gauge jumped 4.2 percent to 878.9 at the close in Prague, the biggest gain since Sept. 26. Komercni, a unit of Societe Generale SA, Erste Group Bank AG of Austria and CEZ, the biggest Czech power utility, rose at least 5 percent. The three stocks combined make up 56 percent of the benchmark.

Global stocks rallied after the central banks of the U.S., the euro region, Canada, the U.K., Japan and Switzerland agreed to cut the cost of dollar funding via swap arrangements. China said earlier today it will cut the reserve requirement ratio for banks by 0.5 percentage points from Dec. 5.

The koruna appreciated as much as 1.8 percent, the biggest intraday gain since May 2010, after the central banks’ report and last traded 1.4 percent stronger to 25.199 per euro.

--Editors: Linda Shen, Peter Branton

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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