Prague Stocks Jump Most in 21 Months as Election Halts Tax Push - Bloomberg

Prague Stocks Jump Most in 21 Months as Election Halts Tax Push - Bloomberg:

"Czech shares surged the most since January 2012 as political parties promising to raise company taxes failed to gain control of parliament in general elections.
The PX (PX) index jumped 2.7 percent, the biggest gain among 94 global gauges tracked by Bloomberg after Cyprus and Venezuela. Komercni Banka AS, a unit of Societe Generale SA, increased 4.1 percent to a record 4,690 by the close in Prague as Goldman Sachs Group Inc. and Deutsche Bank AG recommended buying the stock. Power utility CEZ AS added 6.5 percent, its best day since 2009. Czech sovereign bonds gained while the koruna fell.
The Social Democrats, or CSSD, and Communists, who planned to increase taxes on utilities and banks, received a combined 88 of parliament’s 200 seats in the Oct. 25-26 election, after most opinion polls favored the two parties to get a majority. Having won the vote with 50 seats, the CSSD is now seeking to rule with the support of billionaire Andrej Babis’s pro-business ANO party, which rejects higher taxes, and the Christian Democrats."

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