The Czech Republic’s stock index rose to its highest in more than two months, led by Erste Group Bank AG (RBAG), Komercni Banka AS (KOMB) and CEZ AS (CEZ) and as optimism about the global economic recovery boosted demand for riskier assets.
CEZ, the country’s biggest power utility, rose 1.3 percent to 800.9 koruna, its highest close in five months. Komercni, a unit of Societe Generale SA, climbed 1.5 percent and Austria’s Erste jumped 2.1 percent. The three stocks comprise 55 percent of the PX (PX) gauge, which advanced 1.2 percent.
Global stocks and commodities rallied as a report from the U.S. Institute for Supply Management’s factory index showed manufacturing growth in the world’s largest economy accelerated last month more than expected. Data published in the past two days showed a pickup in Chinese and Indian manufacturing.
“The January effect so far shows in stock markets,” Josef Nemy, an analyst at Komercni Banka in Prague, wrote in an e-mail to clients today. “The main impulse today was the ISM index of industrial activity in the U.S.”
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