Prague shares close higher on strong demand for utilities, Czech crown at record

Prague shares close higher on strong demand for utilities, Czech crown at record

	Published : Fri, 26 Oct 2007 16:00 By : Agencies Print this Story

PRAGUE (Thomson Financial) - Prague shares closed higher, led by positive sentiment toward utility stocks CEZ and Unipetrol, buoyed by high oil and energy prices.

The main PX index closed 1.35 pct up at 1,910.1 points, setting an all-time record.

The region's major power group CEZ rose 3.19 pct to 1,342.5 crowns, another record after closing yesterday above the psychological 1,300 crown mark for the first time.

Refiner Unipetrol, majority owned by Polish refinery group PKN Orlen, also hit a record high, jumping 4.34 pct to 337.85 crowns and gaining back losses from the past week.

'Both companies have been mainly supported by high oil and energy prices, but the rise today seems too quick and too much, so some correction may come soon,' said Petr Hlinomaz, an analyst at BH Securities.

'Sentiment toward the Czech Republic is very positive right now and both CEZ and Unipetrol have been on the road visiting investors in the past weeks,' said analyst Bram Buring of Wood & Co.

Central European Media Enterprises climbed 1.35 pct to 2,063.5 crowns, helping to offset losses the media group saw earlier in the week.

Mobile operator Telefonica O2 Czech Republic also rose 0.34 pct to 558.9 crowns after releasing solid third-quarter results after the market close yesterday.

Trading volumes were near the 12-month average daily traded volume of 3.7 bln crowns, dealers said, although the market lacked sellers.

The Czech crown also moved into record territory on the back of positive regional sentiment following Polish elections last weekend, breaking below 27 crowns to the euro for the first time and hitting 26.832 to the euro in the late afternoon before pulling back slightly.

jason.hovet@thomson.com +420 222 191 109

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