Bloomberg News

Erste, Komercni Lead Czech Stock Index Lower on Capital Concern

January 04, 2012

Jan. 4 (Bloomberg) -- Czech stocks fell for the first time in five days as concern European lenders will need to raise more capital sent Erste Group Bank AG and Komercni Banka AS lower.

The PX Index dropped as much as 1 percent and traded 0.8 percent lower at 926.9 by 2:35 p.m. in Prague. Austria’s Erste slumped 3.7 percent and Komercni, Societe Generale SA’s Czech unit, slid 1.5 percent.

European stocks retreated from a five-month high after Italy’s UniCredit SpA offered a 43 percent discount on its 7.5 billion-euro ($9.8 billion) share offering as banks in the euro area struggle to cover losses and plug capital shortfalls. The European Central Bank reported overnight deposits from financial institutions rose to an all-time high.

--Editors: Stephen Kirkland

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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