UPDATE 1-Czech utility CEZ jumps on Warsaw bourse debut

(Wraps Czech, Polish stories, adds analyst, updates prices)

WARSAW, Oct 25 (Reuters) - Czech power group CEZ <CEZPsp.PR> <CEZP.WA> gained four percent on its Warsaw bourse debut on Wednesday, becoming the biggest stock on central Europe's leading stock exchange and its first listed major utility.

Shares in state-controlled CEZ opened at 120 zlotys ($38.85) in Warsaw, 3 percent above the reference price -- or Tuesday's stock close in Prague -- of 116.4 zlotys. It had gained ground to 121 zlotys at 0850 GMT.

In Prague, the stock rose 2.42 percent to hit a new all-time high of 873.1 Czech crowns ($38.62).

Analysts said the group's debut was attractive for local cash-rich pension funds and predicted it would be a must-have stock for institutional investors because it looked set to enter Warsaw's blue-chip index WIG 20 <.WIG20>.

"It was a good debut," said Wlodzimierz Giller, analyst at Deutsche Bank Securities in Warsaw. "Some funds may have been waiting for the stock to start trading in Warsaw, though I think the biggest regional players have already bought CEZ in Prague."

The Warsaw bourse, whose capitalisation of domestic firms tops $130 billion, has been dominated by local banks, while the power sector is represented only by a handful of small players such as Bedzin <BEDZ.WA> or Kogeneracja <KGEN.WA>.

Eight foreign firms, including Bank Austria <BACA.WA> and Hungary's oil group MOL <MOLB.WA> have already listed in Warsaw, hoping their stocks would benefit from strong demand from pension and mutual funds which have limits on investing abroad.

CEZ stock has gained 40 percent over the past 12 months, beating the Prague PX index <.PX>, mainly due to rising electricity prices, foreign acquisitions and a dominant domestic position in both power production and distribution.

It said in a prospectus ahead of the share listing in Warsaw that it was ready to use all 6 billion to 7 billion euros in cashflow it generates by 2009 for acquisitions.

((Writing by Ewa Krukowska; editing by Sue Thomas, Reuters Messaging: ewa.krukowska.reuters.com@reuters.net; tel. +48 22 6539710)) ($1=3.089 Zloty) ($1=22.61 Czech Crown)

Keywords: UTILITIES POLAND CEZ