Bloomberg News

New World Resources Gains After CTK Reports OKD Strike Averted

April 03, 2012

New World Resources Plc (NWR), the biggest Czech coking-coal producer, rose after its OKD AS unit called off a strike warning following an agreement on wages, according to the CTK public newswire.

The stock increased 2 percent to 133.8 koruna as of 10:56 a.m. in Prague, making it the third-best performer in the PX (PX) index of 14 equities, which added 0.6 percent. A close at that level would be the biggest jump for NWR since March 26.

OKD’s trade union revoked a strike warning declared on Feb. 28 after management proposed to increase wages by 3 percent starting this month, CTK reported late yesterday, citing OKD union leader Jaromir Pytlik.

“The 2012 wage agreement is a successful outcome for the company,” Bram Buring, an analyst at Wood & Co. in Prague, wrote in a report to clients today. The deal is “positive” for NWR shares after the unions originally demanded a 7 percent increase and Wood & Co. expected a 4 percent rise, Buring said.

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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