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CEE MARKETS-Stocks rebound, shrug off Polish PM's warning to EU
March 23, 2017 / 10:14 AM / 6 months ago

CEE MARKETS-Stocks rebound, shrug off Polish PM's warning to EU

    * Regional stocks dip initially on news about PZU, OTP Bank
    * PZU fires CEO, Groupama places OTP shares at low price
    * Polish PM says may block the EU's Rome declaration
    * Polish bonds firm slightly ahead of auction

    By Sandor Peto
    BUDAPEST, March 23 (Reuters) - Central European stocks
rebounded on Thursday, tracking Western European peers and
shrugging off a warning from Polish Prime Minister Beata Szydlo
that her country may block a political roadmap for the European
Union.
    Regional share indices dipped in early trade after eastern
Europe's biggest insurer, Warsaw-listed PZU fired its
chief executive, and OTP Bank shares were sold at a
low price in a private placement.
    Regional indexes quickly rebounded as Western European
stocks held steady.
    PZU shares fell by more than 3 percent after the company
fired CEO Michal Krupinski without giving any reason.
 
    The fall pushed Warsaw's bluechip equities index
only slightly into the red as the shares of oil group PKN Orlen
 and refiner Lotos firmed after some rise in
oil prices.
    Hungarian oil group MOL shares also rebounded
following an early dip after the company announced plans for a
1:8 split in its shares which trade around 20,500 forints 
($71.58), a price too high from some retail investors.
    The split will lift the turnover of MOL shares and their
weight in various stock indices, Erste analysts said in a note.
    "MOL is one of the cheapest oil stocks in the region," they
said.
    The shares of the region's biggest independent bank, OTP
 fell to a 4-month low of 8,044 forints due to news
that Groupama sold stocks equivalent to about 3 percent of OTP's
capital at 7,800 forints in a private placement.
    But the shares quickly rebounded to 8,216 forints, above
Wednesday's close.
    "Only big-size institutional investors could take part (in
Groupama's sale), therefore the stocks probably got into steady
hands," Erste said in the note.
    Regional currencies were also steady, with the Polish zloty
 rebounding from an early fall, shrugging off renewed
tension between Warsaw and the European Commission.
    In Poland, Szydlo said Warsaw may not accept the coming Rome
declaration which will chart the EU's course after Britain
leaves, if Warsaw's claims -- including the strengthening of
national governments -- are ignored.              
    Polish government bonds firmed slightly ahead of an auction,
with the yield on the 10-year paper dropping 2 basis points to
3.57 percent.   
              CEE        SNAPS   AT  1009          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             27.02  27.02   +0.0  -0.05
                            10     00     0%      %
 Hungary                 309.0  308.8  -0.05  -0.07
 forint                    500    850      %      %
 Polish                  4.273  4.273   +0.0  3.05%
 zloty                       5      6     0%  
 Romanian                4.550  4.557   +0.1  -0.33
 leu                         0      6     7%      %
 Croatian                7.417  7.410  -0.09  1.86%
 kuna                        0      2      %  
 Serbian                 123.7  123.9   +0.1  -0.33
 dinar                     600    600     6%      %
 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      2017
 Prague                  977.6  978.9  -0.13   +6.0
                             1      1      %     8%
 Budapest                31905  31827   +0.2  -0.30
                           .48    .13     5%      %
 Warsaw                  2221.  2223.  -0.11   +14.
                            41     84      %    04%
 Bucharest               7964.  7969.  -0.06   +12.
                            43     25      %    41%
 Ljubljana               793.0  792.9   +0.0   +10.
                             0      0     1%    51%
 Zagreb                  2067.  2081.  -0.68   +3.6
                            14     26      %     2%
 Belgrade     <.BELEX15  738.3  745.8  -1.01   +2.9
              >              1      8      %     2%
 Sofia                   639.2  639.7  -0.08   +9.0
                             3      2      %     0%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.45  -0.04   +031  -5bps
              >              8      8    bps  
   5-year     <CZ5YT=RR  0.222  0.066   +055   +7bp
              >                          bps      s
   10-year    <CZ10YT=R  0.994  -0.00   +059   +0bp
              R>                    6    bps      s
 Poland                                            
   2-year     <PL2YT=RR  2.074  0.008   +284   +1bp
              >                          bps      s
   5-year     <PL5YT=RR  2.954  -0.01   +328  -1bps
              >                     2    bps  
   10-year    <PL10YT=R  3.578  -0.02   +318  -2bps
              R>                    8    bps  
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <    0.3   0.33    0.4      0
              PRIBOR=>                        
 Hungary              <    0.3   0.38   0.52   0.22
              BUBOR=>                         
 Poland               <  1.755  1.787   1.83   1.73
              WIBOR=>               5         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
        
          
     
($1 = 286.3900 forints)

 (Reporting by Sandor Peto)
  
 
 

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