INSTANT VIEW 2-Czech Sept C/A gap better than fcast

                                
 PRAGUE, Nov 11 (Reuters) - The Czech current account showed
a 3.69 billion crown ($217.3 million) deficit in September,
smaller than the 5.5 billion gap forecast by analysts, data
showed on Wednesday.
                                
 The current account income balance -- which includes
dividend payments and other profits booked by foreign companies
-- showed a 23.91 billion crown gap, below last year's 28.84
billion but higher than the 19.65 billion gap in August.
                                
 It reflected a dividend payment of 17.0 billion crowns from
Czech subsidiaries to their foreign parent firms and estimated
reinvested earnings of 8.7 billion crowns, the central bank
said. 
                                
 The 12-month rolling deficit dipped to 79.2 billion crowns
($4.66 billion), or 2.2 percent of estimated 2009 nominal gross
domestic product (GDP), according to Reuters calculations.
                                
 The financial account showed an outflow of direct
investments, the third negative reading this year, and a result
of the global financial crisis whih led foreign banks and
corporations to bring capital back home.
****************************************************************
KEY POINTS:
(CZK billions)            Sept          Aug        Sept forecast
Current Account          -3.69         -8.46        -5.5
Financial Account         9.03         22.01         n/a
Net Direct Investment    -7.63          4.14         n/a

 (For full table, double click on [ID:nPRA004847])
                                
 
 - The balance of goods showed a 20.1 billion surplus, and the
services balance ran a surplus of 3.9 billion.
 - The balance of current transfers includes a deficit of 1.6
billion crown on transfers from the Czech Republic to the EU
budget. On the capital account, a total of 0.2 billion crown was
drawn from the EU budget.
- Capital inflow on the financial account was approximately 9.0
billion crown under ECB methodology.
- Direct investment showed a net outflow of 7.6 billion crowns,
due to acquisitions abroad, equity cuts by foreign owners at
some Czech subsidiaries and credit provided within investment
groups.
- Sales of equity and debt securities from non-bank portfolios
and purchase of government bonds by foreign investors led to net
inflows of portfolio investment of 9.8 billion crown.
- Foreign bond issues improved balance.
- Other investment showed a surplus of 6.8 billion crowns, due
to a change in the short-term international position of banks (a
decline in short-term assets and a rise in short-term
liabilities).
- Central bank foreign currency reserves (adjusted for valuation
changes) fell by 1.1 billion crowns.
                                
  
 COMMENTARY:
                                
 PAVEL MERTLIK, CHIEF ECONOMIST, RAIFFEISENBANK
                                
 "The current account balance in September ended in a
deficit... in line with market expectations."
                                
 "The news is neutral for the crown. We also leave our
expectation for this year's overall deficit of 50 billion crowns
unchanged."
                                
 
  MARKET REACTION:
                                
 The crown trades flat at 26.410 to the euro <EURCZK=> after
the data, and down from a six-week high of 25.325 seen ealrier
on Wednesday.
                                
 
  BACKGROUND:
- Analyst expectations before data release        [ID:nL3705979]
- Czech Sept foreign trade figures                [ID:nL6542741]
- Polish Sept C/A data                            [ID:nLA628048]
- Slovak Aug C/A data                            [ID:nBSD002247]
- Hungary's Q2 C/A gap                            [ID:nLT293744]
- Report on last Czech c.bank rate decision.......[ID:nL4183884]
                                
 [ID:nPRG003761] [ID:nL5208270 [ID:nL5527536] [ID:nPRA004836]

LINKS:
- For further details on September 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       <ECONCZ>
- 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                <CZKVIEW>
- Czech money guide                                      <CZK/1>
- Czech benchmark state bond prices                   <0#CZBMK=>
- Czech forward money market rates                      <CZKFRA>

 (Reporting by Jan Lopatka)