By Krisztina Than
BUDAPEST, Jan 4 Shares of oil and gas group MOL
jumped 2 percent on Wednesday after a hike in the
stock's target price, boosting the Budapest bourse, where a
rally has continued into the new year after a stellar
performance in 2016.
Other regional stock markets were mixed, with Prague's main
index up a quarter of a percent but Poland's -
central and eastern Europe's most liquid market, which gained 5
percent last year, down a third of a percent in early trade.
Hungarian shares rose by a third in 2016, with
blue-chip names benefiting from the country's sound economic
fundamentals, a hike in Hungary's debt rating to investment
grade and an improvement in the banking sector.
Shares of OTP Bank, the region's biggest
independent lender, hit their highest level since early 2008,
before the global financial crisis, early on Wednesday, at 8,470
forints by 0919 GMT.
News that the Croatian government may buy MOL's stake in
Croatian oil company INA has boosted MOL's shares in the last
MOL and Zagreb have locked horns for years over control of
INA, and a potential end to the deadlock has triggered a relief
rally, Monika Kiss, an analyst at brokerage Equilor said.
"This story has been eroding MOL's share price for years,"
she said, adding that some investors were also hoping for an
extraordinary dividend payout from MOL if it gets cash for its
INA stake. But she said the devil would be in the details of the
potential transaction and how well MOL can invest the money.
Deutsche Bank raised its target price for MOL to 24,300 from
20,800 earlier on Wednesday. MOL traded 2.15 percent higher at
21,350 forints at 0912 GMT, pushing the stock marker index 0.7
"The rally (in Hungarian stocks) could continue this year,
but I think it won't last for 12 months," Kiss said.
In currency markets, Poland's zloty briefly hit an
eight-week high early on Wednesday and was 0.1 percent firmer by
"As long as... data releases from the global economy remain
good, the zloty could likely stay relatively strong," BZ WBK
analysts said in a note.
Investors are awaiting reviews of Poland's credit ratings by
Moody's and Fitch which are scheduled for Jan. 13.
The zloty and Polish bonds suffered last year from conflict
between Poland's new nationalist-minded government and European
institutions, as well as market worries over political stability
and the country's fiscal standing.
CEE MARKETS SNAPSH AT 1015 CET
Latest Previo Daily Change
bid close change in
Czech crown 27.020 27.025 +0.02 -0.05%
0 5 %
Hungary 308.82 308.95 +0.04 0.00%
forint 00 50 %
Polish zloty 4.3900 4.3948 +0.11 0.32%
Romanian leu 4.5205 4.5228 +0.05 0.32%
Croatian 7.5680 7.5655 -0.03% -0.17%
Serbian 123.32 123.43 +0.09 0.02%
dinar 00 00 %
Note: daily calculated previo close 1800
change from us at CET
Latest Previo Daily Change
close change in
Prague 935.02 932.86 +0.23 +1.46
Budapest 32383. 32169. +0.66 +1.19
02 13 % %
Warsaw 1983.3 1989.6 -0.32% +1.82
3 4 %
Bucharest 7175.7 7164.3 +0.16 +1.28
2 5 % %
Ljubljana 707.43 707.96 -0.07% -1.42%
Zagreb 2025.7 2025.1 +0.03 +1.55
1 9 % %
Belgrade 718.10 717.37 +0.10 +0.10
Sofia 589.45 587.10 +0.40 +0.51
Yield Yield Spread Daily
(bid) change vs change
2-year -0.978 -0.117 -019bp -10bps
5-year -0.226 -0.051 +030b -4bps
10-year 0.484 -0.038 +022b -3bps
2-year 2.138 0.002 +293b +2bps
5-year 2.998 -0.025 +352b -2bps
10-year 3.749 -0.007 +349b +0bps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
Czech Rep <PR 0.2 0.14 0.12 0
Hungary <BU 0.36 0.42 0.52 0.36
Poland <WI 1.775 1.83 1.905 1.73
Note: FRA are for ask
(Additional reporting by Jakub Iglewski; Editing by Catherine