CEZ Gains Amid Global Selloff on Stoxx Membership: Prague MoverKrystof Chamonikolas
CEZ AS defied a global stock selloff as a planned addition of the biggest Czech power utility to a developed-markets benchmark boosted buying.
The shares rose 0.7 percent to 457 koruna by 1:55 p.m. in Prague, paring this year’s slump to 33 percent. CEZ’s home PX index fell 0.6 percent while the Stoxx Europe 600 Index, which it’s scheduled to join next month, retreated 1 percent on concern the U.S. would take military action against Syria.
CEZ and Komercni Banka AS, a unit of Societe Generale SA, will be the first Czech companies to join the western European gauge from Sept. 23, Stoxx Ltd. said yesterday. The move follows a reclassification of the country as a developed market by the index provider, according to the statement.
“This fact should increase the attractiveness of the companies for investors tracking indexes and it should also increase liquidity,” analysts at J&T Banka AS led by Milan Vanicek wrote in a report to clients today.
Komercni Banka dropped 0.5 percent, compared with a 1.4 percent drop for 16 sector peers tracked by Bloomberg.