Czech Stocks Advance to Eight-Month High, Led by Komercni Banka
Czech shares rose to the highest in more than eight months, led by Komercni Banka AS (KOMB) and Vienna Insurance Group AG, as an easing of investment rules in China boosted investor demand for financial stocks worldwide.
Komercni, a unit of Societe Generale SA, climbed 2 percent to 3,941 koruna by the end of trading in Prague, while VIG of Austria advanced 1.2 percent. The PX (PX) index, in which the two companies have a combined weight of 34 percent, advanced 0.3 percent to 997.73, the highest close since March 19.
Lenders were among the biggest stock gainers in Europe today after China curbed restrictions on investments in banks and HSBC Holdings Plc agreed to sell its stake in China’s Ping An Insurance (Group) Co. to Thai billionaire Dhanin Chearavanont for $9.4 billion to boost profit and capital.
“Favorable news from China and a successful asset sale by HSBC are the main factors supporting gains for financial stocks across Europe, including Czech banks,” Marek Hatlapatka, an analyst at Cyrrus brokerage in Brno, Czech Republic, said by e- mail.
The koruna strengthened 0.1 percent to 25.225 per euro.
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