INSTANT VIEW 3-Czech April C/A gap jumps on dividend payouts

...April, following a revised 8.53 billion 
surplus a month earlier, data showed on Friday. 
    The 12-month rolling deficit narrowed slightly to 112.4 
billion crowns, or 3.2 percent of last year's gross domestic 
product (GDP) according to Reuters' calculations, from revised 
104.6 billion crowns a month earlier. 
 
KEY POINTS: 
(CZK billions)           April       March        April forecast 
Current Account          16.79     8.53  (8.26)     -9.00 
Financial Account         6.45   -17.92(-17.72)      n/a 
Net Direct Investment    12.52     1.55  (5.07)      n/a 
 
 (For full table, double click on..................[nPRA001354] 
 
- The large monthly deficit is mainly due to a 23.16 billion 
crown deficit in the income balance caused by payments of 
dividends and estimated direct investment reinvested earnings. 
- Net foreign direct investment inflows total 12.52 billion 
crowns, which the central bank estimated included about 8.7 
bilion crowns in reinvested profits. 
- Portfolio investments show a net 1.1 billion crown inflow, 
mainly due to equity transactions. 
 
COMMENTARY: 
    MICHAL BROZKA, ANALYST, RAIFFEISENBANK, PRAGUE 
    "The dividend outflows are rising, still I do not expect any 
significant reaction of the crown. 
    "While the dividend payments season is a negative factor for 
the crown, the recent developments of the balance of payments 
show that the crown's weakening in the first half of the year 
can be attributed to different factors -- mainly to the interest 
rate differential and global factors." 
     
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "This is quite a poor result, which may partly explain why 
the crown did so poorly in April. 
    "The dividend season has started and the outflows so far 
seem to be stronger than last year. And this is not encouraging 
news for the crown when one takes into account the interest rate 
differential and rising yields in foreign markets." 
 
MARKET REACTION: 
- Crown broadly steady on the day, trading at 28.610 per euro 
 by 0815 GMT, not far off 14-month lows it plumbed on 
Thursday. 
 
 BACKGROUND: 
- Analyst expectations before data release       [ID:nL30315279] 
- Czech April foreign trade figures              [ID:nL06479683] 
- Polish March C/A                               [ID:nL18174753] 
- Slovak March C/A gap                           [ID:nLPRG000366 
- Hungary's Q4 C/A gap                           [ID:nL30184266] 
- Report on last Czech c.bank rate decision      [ID:nPRA001319] 
                                 [ID:nL31276683] [ID:nL31320495] 
 
LINKS: 
- For further details on April 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=21.46 Czech Crown) 
  Keywords: CZECH ECONOMY/BALANCE