Bloomberg News

Koruna Weakens as Komercni Leads Czech Stocks Down on EU Summit

December 07, 2011

Dec. 7 (Bloomberg) -- The koruna weakened for a second day and Czech stocks fell, led by Komercni Banka AS, amid speculation the European Union will not agree on ways to contain the region’s debt crisis at a summit starting tomorrow.

The Czech currency slid 0.4 percent to 25.341 per euro by 4:42 p.m. in Prague. Komercni, the Czech unit of Societe Generale SA, dropped 3.8 percent to 3,194 koruna, the worst performer in Prague and dragging the PX index 1.1 percent lower at the close of trading.

Global stocks fell and the euro weakened against the dollar after a German government official said the EU’s largest country rejects proposals to combine the current and permanent euro-area rescue funds and is pessimistic about the outcome of this week’s summit. The region is the main market for Czech exports, which account for about 70 percent of the country’s economic output.

--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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