NWR Drops as Commodity Selloff Outweighs PKO Note: Prague Mover

New World Resources Plc (NWR), the Czech Republic’s biggest producer of coking coal, fell the most this month as a drop in commodity prices overshadowed an upgrade from PKO Bank Polski SA.

NWR retreated 2.7 percent to 90.01 koruna by the close in Prague, its steepest one-day drop since Aug. 30 and extending losses this year to 34 percent. Europe’s benchmark coal price fell 0.7 percent to $98.85 a metric ton in the Netherlands.

Basic-resources companies are among the biggest decliners in Europe today after data showed manufacturing and services output in the euro area, the biggest buyer of Czech exports, fell to a three-year low in September. Chinese manufacturing probably shrank for an 11th month and Japan’s exports tumbled for a third month, according to separate reports.

“Trading in Asian markets brought a significant worsening of investor sentiment because of renewed concern about the global economy after Japanese exports and data on the Chinese industry disappointed,” Josef Nemy, a stock analyst at Komercni Banka AS in Prague, wrote in a report to clients today.

PKO raised NWR to hold from sell in a report from Warsaw- based analyst Artur Iwanski, citing the stock’s “significant decline” and expectations coking coal will rebound next year.

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 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.