About Czech Republic

Prague- The stock of power company CEZ, one of the Prague bourse's best performers in recent years, is the worst performer this year, having shed 2.74 percent to Kc886.5 and having lost 7.7 percent so far this year, the bourse said.

The bourse's PX index dropped 1.19 percent to 1,686.6 points today, and is 6 percent above last year's close.

According to dealers, investors are selling the CEZ stock amid concern about a possible sale of a part of the state-owned stake in the company via the bourse.

Czech Industry and Trade Minister Martin Riman said in an interview for daily Hospodarske noviny that 6-7 percent of the CEZ stock in government hands could be sold on the bourse to the highest bid, and not necessarily to CEZ.

The government needs the money for the Transport Fund.

The CEZ stock also lost due to the falling price of electricity and the worse-than-expected Q4 2006 results of Austrian power utility Verbund.

CEZ will publish its results on Thursday.

Among other blue chips, Unipetrol put off 1.48 percent to Kc239.7, Zentivya fell by 1.3 percent to Kc1,293 and Erste Bank dipped by 1.07 percent to Kc1,667.

One of the few stocks bucking the trend was developer ECM, rising by 1.53 percent to Kc1,655.

Erste Bank and Cyrrus analysts issued a "buy" recommendation for ECM. Cyrrus set the target price at Kc1,938.

Posted by Mikes on Tuesday, February 20, 2007 at 12:54 PM | Permalink