Bloomberg News

Komercni Banka Leads Czech Stock Higher After Greek Budget Vote

February 13, 2012

Feb. 13 (Bloomberg) -- Komercni Banka AS, a unit of Societe Generale SA that took writedowns on Greek bonds last year, rose the most this month, leading a rally in Czech stocks after Greece moved closer to receiving a second bailout package.

The stock added 2.9 percent to 3,710 koruna at its close in Prague, its biggest one-day gain since Jan. 31. The PX index, where Komercni has a 17 percent weighting, climbed 2 percent.

Global stocks advanced, with financial companies among the biggest gainers, after Greek lawmakers approved an austerity bill needed to secure emergency funding. Komercni Banka wrote off 4.3 billion koruna ($228 million) on its 7 billion-koruna portfolio of Greek sovereign debt in 2011.

CEZ AS, the biggest Czech power utility, rose 1.7 percent to 819 koruna. Austria’s Erste Group Bank AG gained 2 percent to 475 koruna.

--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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