Orco Property Group (ORC) SA slumped to an all-time low as Greece’s failure to form a government drove investors from riskier assets across Europe, outweighing a $94 million asset sale by the company.
The stock dropped 2 percent to 66.5 koruna at the close in Prague, the lowest since the developer in central Europe listed its shares on the Czech bourse in 2005.
European stocks tumbled and Italian and Spanish bonds fell after Greece called fresh elections, fueling concern the nation will exit the euro. The shares in Orco, which is overhauling its business and debt under a court-approved plan, earlier jumped as much as 6.2 percent after the company said it sold a property in Prague to a unit of U.S.-based L88 Companies.
“Orco shares failed to hold on to the morning gains that followed the announcement of the sale” because investors regard the prospects for early elections in Greece “as bad news mainly for Europe’s financial sector,” Miroslav Adamkovic, an analyst at Komercni Banka AS in Prague, wrote in a report today.
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