* Paper says Hernadi to be replaced within weeks
* MOL firmly denies press report, says CEO to stay
* Shares drop 0.7 percent, underperforming market
(Updates with MOL denial, share price)
BUDAPEST, Sept 17 (Reuters) - Hungarian oil and gas group MOL denied on Friday a press report that its Chairman and Chief Executive Zsolt Hernadi would step down within weeks.
"MOL Group firmly denies that Zsolt Hernadi, Chairman and CEO of MOL Group, would step down as the Company's head," Dora Somlyai, Vice President at MOL Group Corporate Communications told Reuters in an emailed response to questions.
"Mr. Hernadi was elected on 23 April 2008 by the Annual General Meeting to be a member of the Board of Directors until February 2014. Furthermore, on the Board's agenda there is no item in relation to a change in this position," she said.
"Zsolt Hernadi as Chairman and CEO continues to implement the accepted strategy of MOL Group."
Earlier on Friday business daily Vilaggazdasag cited several unnamed sources as saying that Hernadi -- chairman and CEO at Hungary's biggest company since June 11, 2001 -- would stand down later this month or early in October.
The paper tipped Istvan Kocsis, the head of public transport company BKV, as Hernadi's successor. Kocsis later denied any link to the possible vacancy.
One analyst said news of Hernadi staying on was positive.
"The market regards Hernadi's work as strategically positive," ING analyst Tamas Pletscher said. "The question marks about a potential successor have contributed to (the uncertainty following the news)."
"Kocsis has no real experience in the oil industry, so such a change would probably be negative. Overall, this does not change the assessment that the stock had, say, yesterday."
At 1114 GMT, MOL stock traded down 0.7 percent at 21,845 forints ($101.5) on the Budapest Stock Exchange, off earlier gains of about 1.2 percent and underperforming the blue chip index, which was 0.4 percent higher. (Reporting by Gergely Szakacs and Marton Dunai; Editing by Michael Shields and Jon Loades-Carter) ($1=215.17 Hungarian Forints)