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CEE MARKETS-MOL lifts Budapest shares, leu hits 6-month low
December 27, 2016 / 3:07 PM / 9 months ago

CEE MARKETS-MOL lifts Budapest shares, leu hits 6-month low

* Budapest stocks test record high as MOL rises almost 3 pct
    * Croatia has offered to buy MOL's INA stake
    * Leu hits 6-month low after president rejects PM candidate

 (Adds Romanian president's rejection of PM candidate)
    By Sandor Peto
    BUDAPEST, Dec 27 (Reuters) - Shares of oil and gas firm MOL
 pushed Budapest's equities index close to a
record high on Tuesday after Croatia's government offered to buy
MOL's stake in Croatia's INA.
    MOL shares were up 2.4 percent by 1420 GMT, helping the
index rise 0.6 percent, while most other asset prices in Central
Europe were treading water. 
    Croatia said on Saturday it wanted to buy out MOL's 49
percent stake in INA, in which the Hungarian firm holds
management rights.
    INA shares surged by over 9 percent in Zagreb in
thin trading.
    "There are no institutional investors in the market between
Christmas and the New Year and retail investors thought the news
about the buyout offer is good," one Budapest-based stock trader
said.
    MOL and Croatian governments have been wrangling over
control of INA for years, hindering investments. 
    The government has not disclosed details of its offer.
According to the market valuation, MOL's stake is worth some 16
billion kuna ($2.22 billion). MOL told national news agency MTI
it was open to talks about INA.
    Elsewhere, the leu touched a 6-month low against
the euro amid continuing political uncertainty.
    Romanian President Klaus Iohannis on Tuesday rejected the
election-winning Social Democrat Party's nominee for prime
minister Sevil Shhaideh, asking them to find someone else.
 
    The forint traded at 5-week highs and remained
firmer than the psychological barrier of 310 to the euro,
although the Hungarian central bank continued to boost liquidity
in local markets last week through its one-week and one-month
currency swaps.
    Market participants generally believe the Hungarian central
bank would prefer the currency to weaken past 310 to the euro.
    On the other hand, a firmer currency will reduce the forint
value of foreign-currency state debt at year-end, helping the
debt agency AKK as it tries to cut the debt-to-GDP ratio from
about 75 percent at the end of last year.
    "(Forint) turnover is low and there has been no sign of
intervention so far," one currency dealer said.
    AKK has reduced the level of debt issues in the past weeks
and even limited its repo operations, indicating that it wants a
lower year-end debt level, one Budapest-based fixed income
trader said.
    "Bonds are steady now ... A weakening is possible in
January-February, when the state usually sells more debt," the
trader said.

              CEE        SNAPS   AT  1520          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2016
 Czech crown             27.02  27.02   +0.0  -0.09
                            10     85     3%      %
 Hungary                 308.7  309.3   +0.2  1.92%
 forint                    000    650     2%  
 Polish                  4.404  4.398  -0.15  -3.33
 zloty                       7      0      %      %
 Romanian                4.534  4.532  -0.05  -0.34
 leu                         4      3      %      %
 Croatian                7.554  7.547  -0.09  1.13%
 kuna                        0      0      %  
 Serbian                 123.1  123.4   +0.3  -1.33
 dinar                     100    800     0%      %
 Note: daily  calculate  previ  close  1800        
 change       d from     ous    at     CET    
                         STOCK                     
                         S                    
                         Lates  Previ  Daily  Chang
                         t      ous           e
                                close  chang  in
                                       e      2016
 Prague                  920.5  916.7   +0.4  -3.75
                             0      5     1%      %
 Budapest                31840  31638   +0.6   +33.
                           .53    .81     4%    11%
 Warsaw                  1937.  1933.   +0.1   +4.1
                            09     60     8%     9%
 Bucharest               7007.  7013.  -0.08   +0.0
                            79     61      %     5%
 Ljubljana               703.6  705.2  -0.22   +1.0
                             9      1      %     8%
 Zagreb                  1997.  1991.   +0.3   +18.
                            66     43     1%    23%
 Belgrade     <.BELEX15  716.9  710.9   +0.8   +11.
              >              0      0     4%    30%
 Sofia                   581.5  580.3   +0.2   +26.
                             3      1     1%    17%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.97  0.081  -016b   +10b
              >              2            ps     ps
   5-year     <CZ5YT=RR  -0.25  -0.02   +028  -1bps
              >              6      3    bps  
   10-year    <CZ10YT=R  0.444  -0.02   +023  -1bps
              R>                    9    bps  
 Poland                                            
   2-year     <PL2YT=RR  1.968      0   +278   +2bp
              >                          bps      s
   5-year     <PL5YT=RR   2.72  0.001   +326   +2bp
              >                          bps      s
   10-year    <PL10YT=R  3.445  -0.00   +324   +1bp
              R>                    4    bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.21   0.24   0.12      0
              PRIBOR=>                        
 Hungary              <   0.37    0.4   0.48   0.38
              BUBOR=>                         
 Poland               <   1.76   1.77   1.81   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 ($1 = 7.2126 kuna)

 (Additional reporting by Robert Muller in Prague; editing by
Andrew Roche)

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