Prague Stock Exchange accelerates decline, down 1.73 pct today

Prague, March 12 (CTK) - The Prague Stock Exchange (BCPP) accelerated its decline today, its headline PX index losing 1.73 percent to 2,544.94 points, with banks posting losses, while energy group CEZ also weakened after the publication of last year's financial results, according to the bourse's website.

The Prague Stock Exchange deepened Wednesday's losses, said Fio banka broker Pavel Hadrousek. "The main reason remains persistent tensions in the Middle East," he said.

Stocks in Prague weakened along with bourses in Western Europe, noted Wood & Company broker Barbora Zelena. "The main reason remains the conflict in the Middle East and the associated rising oil prices, attacks on tankers and restrictions on traffic through the Strait of Hormuz," she added.

Banks lost ground again. Erste Group Bank fell by 2.44 percent to CZK2,279, Moneta Money Bank by 1.71 percent to CZK184.20 and Komercni banka by 0.62 percent to CZK1,122. Insurance company VIG wrote off 3.95 percent to CZK1,508.

"CEZ today reported its financial results for last year and ended up losing 0.67 percent to CZK1,179," Hadrousek said. Investors reacted mainly to the company's conservative outlook for this year, which fell short of analysts' expectations, he said. According to the published report, CEZ's net profit fell by 5.8 percent year-on-year to CZK27.4bn last year.

Shares of arms companies also headed down. Colt CZ shed 1.23 percent to CZK884 and Czechoslovak Group (CSG) weakened by 3.71 percent to CZK700. Analysts at Erste today issued a hold recommendation on CSG shares with a 12-month target price of EUR36 (roughly CZK880).

Tobacco company Philip Morris' shares remained unchanged at CZK19,800. Metallurgical firm Gevorkyan showed a 0.86 percent rise to CZK234.

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