INSTANT VIEW 4-Czech Feb C/A shows 2nd consecutive surplus

...49 billion crown surplus a month 
earlier, data showed on Friday. 
    The 12-month rolling deficit narrowed marginally to 128 
billion crowns, or 4.1 percent of last year's gross domestic 
product (GDP) according to Reuters' calculations, from 133 
billion crowns a month earlier. 
 
KEY POINTS: 
(CZK billions)           Feb         Jan           Feb forecast 
Current Account           4.00        5.49           7.00 
Financial Account         5.15      -15.21           n/a 
Net Direct Investment    13.38      -12.82           n/a 
 
 (For full table, double click on..................[nPRA001248]) 
 
- The monthly surplus is mainly due to a 13.61 billion crown 
surplus in the balance of foreign trade balance following a 11.6 
billion crown surplus in January. The balance of services 
surplus doubles to 1.24 billion crowns from 0.64 billion. 
- Net foreign direct investment inflows total 13.4 billion 
crowns, which includes 6.2 bilion crowns in reinvested profits. 
- Portfolio investments show a net 1.5 billion crown inflow, 
mainly due to sales of local currency government bonds and 
equities by foreign investors. 
 
COMMENTARY: 
    DAVID MAREK, CHIEF ANALYST, PATRIA FINANCE, PRAGUE 
    "The current account surplus marks a mild disappointment 
after the very good foreign trade result, however it seems the 
current account deficit could return below 4 percent of GDP on 
annual cumulative basis. Our estimate calls for a deficit of 3.8 
percent of GDP. This should alleviate concerns over the external 
imbalances in the Czech economy, and possibly also open the door 
for a further firming in the crown." 
     
    JAN VEJMELEK, HEAD OF ECONOMICS AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "The result is below the adjusted average market expectation 
but it cannot be seen as a disappointment. A second (consecutive 
monthly) surplus is a positive, and the annual cumulative number 
has also stabilised one quarter earlier than we had thought." 
     
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "The outcome is worse than we had expected because of a 
further drop in transfers. It looks like the Czech Republic 
still has large reserves in drawing on funds from the EU. 
    "Otherwise, the structure brought no surprises. The result 
will neither enchant nor undermine the crown, so the market will 
soon sweep it from its mind." 
 
MARKET REACTION: 
- Crown largely flat on the day at 27.930 per euro  by 
0823 GMT. 
 
BACKGROUND: 
- Analyst expectations before data release        [ID:nL2940601] 
- Czech Feb foreign trade figures                 [ID:nL0424065] 
- Polish Jan C/A                                 [ID:nWAR005477] 
- Slovak Jan C/A gap                             [ID:nLPRG000284 
- Hungary's Q4 C/A gap                           [ID:nL30184266] 
- Report on last Czech c.bank rate decision      [ID:nPRA001221] 
                 [ID:nL06735130] [ID:nPRA001222] [ID:nL29598110] 
 
LINKS: 
- For further details on February of payments numbers and past 
data, Reuters 3000 Xtra users can click on the Czech National 
Bank's website: 
    http://www.cnb.cz/en/statistics/bop_stat/ 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
  
 ($1=20.77 Czech Crown) 
  Keywords: CZECH ECONOMY/BALANCE