CEZ Extends Drop to Seven-Year Low on Electricity: Prague Mover
CEZ AS (CEZ) tumbled to the lowest in more than seven years as falling electricity prices outweighed speculation that the biggest Czech utility’s earnings will be boosted by a new coal-supply contract and an asset sale.
The shares slid 2.1 percent to 564 koruna in Prague, its weakest close since August 2005. The stock’s 14-day relative strength index dropped to 27, below the 30 level that signals in technical analysis the asset may rebound.
Power for next-year delivery in Germany, where CEZ sells part of its output, fell to a record low as European stocks retreated on concern the euro area’s debt crisis may get worse. That overshadowed CEZ’s announcement today that it signed a deal with Czech Coal to fuel its Pocerady plant, saying the move will add as much as 2 billion koruna ($100 million) to 2013 operating profit. CEZ also agreed to sell its Chvaletice coal plant to Litvinovska Uhelna AS for 4.12 billion koruna.
The German power contract dropped 0.3 percent to 40.30 euros a megawatt-hour, the lowest on a closing basis since Bloomberg began tracking the data in 2007.
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