Bloomberg News

Erste Leads Czech Shares Down From Four-Month High on Bundesbank

August 20, 2012

Erste Group Bank AG (EBS) led Czech shares down from a four-month high as the Bundesbank’s opposition to the European Central Bank’s bond-buying program raised concern policymakers will fail to stem the region’s debt crisis.

Erste of Austria slumped 3.2 percent, the most this month, to 398 koruna at the close in Prague. Komercni Banka AS (KOMB), Societe Generale SA’s Czech unit, slid 0.9 percent. The PX (PX) equity index, in which the two lenders have a 39 percent weighting, retreated 1 percent, after earlier touching the highest since April 4.

Stocks fell globally and Spanish bonds pared gains after the German central bank said that the ECB’s plan will pose “significant stability risks” for the euro area, highlighting the rift among policy makers over ways to end the debt crisis. The region is the biggest buyer of Czech exports.

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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