Bloomberg News

CEZ Drops for Second Day as Power Price Declines on Euro Crisis

April 16, 2012

CEZ AS (CEZ), the biggest Czech utility, fell for a second day as electricity prices slid on concern Europe’s worsening debt crisis and slower growth in Asia will hurt demand for commodities and energy.

The stock declined 1 percent to 765 koruna by 10:50 a.m. in Prague, after slumping 2.1 percent in the previous session to its lowest level in 2 1/2 months. The 14-member PX (PX) equity gauge, where CEZ has a 21 percent weighting, retreated 0.8 percent today.

Commodities tumbled as Spanish bond yields rose to a four- month high ahead of auctions this week, approaching levels that prompted Greece, Ireland and Portugal to seek bailouts, and South Korea’s central bank cut its growth estimate for Asia’s fourth-largest economy. Power for next-year delivery in Germany, where CEZ exports part of its output, dropped 1 percent to 51.15 euros per megawatt-hour.

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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