Jan. 26 (Bloomberg) -- Czech stocks rose the most in almost two months, led by Erste Group Bank AG and Komercni Banka AS, after the Federal Reserve signaled it will keep rates near-zero through 2014 to boost the world’s largest economy.
Erste increased 8.6 percent to 441.4 koruna and Komercni Banka, the Czech unit of Societe Generale SA, rose 4.2 percent to 3,710 koruna at the end of trading in Prague. The PX equity gauge rose 3.4 percent to 978.1, its biggest one-day rally since Nov. 30 and the highest close since Sept. 9.
European stocks rose as the Fed comments bolstered investor confidence that the U.S. recovery will continue and after a report that Greece’s creditors will make a new offer for a debt- swap deal. Erste and Raiffeisen Bank International AG yesterday had their A credit ratings affirmed by Standard & Poor’s, which had put them on review for a possible downgrade on Dec. 8.
“After a rating downgrade for Austria and given that French banks had their ratings lowered recently following the cut for France, the fact that Erste’s rating was maintained is a slightly positive surprise,” Marek Hatlapatka, an analyst at Cyrrus AS brokerage in Brno, Czech Republic, wrote in a report to clients today.“We still see the risk of a downgrade as non- negligible.”
--Editors: Linda Shen, Peter Branton
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