Czech Stocks Reverse Loss as Erste Group Gains on Capital Buffer

Czech stocks reversed earlier losses as Erste Group Bank AG (RBAG) of Austria increased after the regulators said the company exceeded capital reserve targets.

The 14-company PX (PX) gauge rose 0.3 percent to 906.90 today by the end of trading in Prague, after earlier sliding as much as 0.7 percent. Erste, which has a 20 percent weighting in the index, climbed 1 percent, reversing an earlier 2.2 percent loss.

Financial stocks gained in Europe after the European Banking Authority said today that the region’s banks increased their capital reserves by $116 billion in the first half of 2012 in a push to limit contagion from the euro area’s sovereign crisis. Erste exceeded the capital targets, according to the Austrian Central Bank and Financial Markets Authority.

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

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.