September 29, 2016 / 1:12 PM / a year ago

CEE MARKETS-Polish stocks fall on reshuffle, Czechs keep crown cap policy

* Crude rise boost stocks, but Warsaw index eases
    * Government change weighs on Polish stock market sentiment
    * Czech central bank maintains guidance on crown cap
    * Hungary doubles government bond sale

 (Adds comments from Polish minister, Czech central bank)
    By Sandor Peto and Jason Hovet
    BUDAPEST/PRAGUE, Sept 29 (Reuters) - Warsaw's stock index
 eased on Thursday, bucking a rise in Central European
equities driven by rising crude prices,  after Poland's ruling
party firmed its grip on economic policy with a government
reshuffle announced late on Wednesday.
    The finance ministry will come under the supervision of
economy minister Mateusz Morawiecki, an ally of Jaroslaw
Kaczynski, the president of the ruling Law and Justice Party.
    The party has stood for more government influence and less
foreign ownership in certain sectors including banks and more
government spending to stimulate economic growth.
    Morawiecki pledged to maintain fiscal stability while
fulfilling election promises.  
    Warsaw's bluechip stock index had shed 0.9 percent
by 1234 GMT, while Budapest gained 1.7 percent, Prague
 1 percent and Bucharest 0.6 percent.
    A global rise in crude prices after oil producers agreed to
curb output drove gains in oil and energy utilities shares in
the world and Central Europe.
    Polish state-run utilities joined the rise, regaining some
ground after a plunge last week amid speculation over personnel
changes in the government and their managements and news about
extra tax burdens. 
    The stocks of refiner Lotos surged 4.8 percent and
the largest Polish utility PGE rose by 2.1 percent, but
most shares in the index declined, led by PKO BP bank.
    Czech utility CEZ gained 3.7 percent even though 
longer-than-expected outages at its nuclear power plants have
weighed on its shares in recent weeks and may even force it to
lower its full-year guidance, J&T Banka analyst Bohumil Trampota
said.
    The Czech central bank reiterated on Thursday it expected to
maintain its cap, which keeps the crown weaker than 27
per euro at least until the middle of 2017.
    It also delayed by three months its "hard" commitment on the
date, declaring the cap would not be removed before the second
quarter of 2017. 
    Speculation about an early removal of the cap boosted the
crown rate implied in six-month forwards to 26.784
three weeks ago. 
    It changed little on Thursday, trading at 26.9. It could
continue to weaken, Komercni Banka analysts said.
    Czech 10-year bonds were bid near record-low yields at 0.25
percent. The crude price rise pushed Polish, Hungarian and
Romanian government bond yields higher by a few basis points.
    Hungary sold 92.6 billion forints ($336 million) worth of
bonds at its auction, doubling its original offer due to robust
demand, with yields dropping by around 15 basis points from an
auction held two weeks ago.    
           CEE      SNAP   AT  1434       
           MARKETS  SHOT  CET         
                    CURRENCIES            
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                    bid   clos  chan  in
                          e     ge    2016
 Czech     <EURCZK  27.0  27.0   +0.  -0.0
 crown     =>        210   230   01%    9%
 Hungary   <EURHUF  308.  308.  -0.1  1.92
 forint    =>       7000  3800    0%     %
 Polish    <EURPLN  4.31  4.29  -0.3  -1.2
 zloty     =>         10    81    0%    3%
 Romanian  <EURRON  4.45  4.45   +0.  1.54
 leu       =>         06    05   00%     %
 Croatian  <EURHRK  7.51  7.51   +0.  1.64
 kuna      =>         60    75   02%     %
 Serbian   <EURRSD  123.  123.  -0.1  -1.5
 dinar     =>       3800  2500    1%    5%
 Note:     calcula  prev  clos  1800      
 daily     ted      ious  e at  CET   
 change    from                       
                    STOC                  
                    KS                
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                          clos  chan  in
                          e     ge    2016
 Prague             874.  866.   +0.  -8.5
                      94    34   99%    1%
 Budapest           2793  2747   +1.   +16
                    8.05  6.40   68%  .79%
 Warsaw    <.WIG20  1718  1734  -0.9  -7.5
           >         .81   .59    1%    5%
 Buchares           6990  6946   +0.  -0.1
 t                   .70   .93   63%    9%
 Ljubljan  <.SBITO  742.  743.  -0.1   +6.
 a         P>         52    36    1%   66%
 Zagreb    <.CRBEX  1940  1940   +0.   +14
           >         .40   .03   02%  .84%
 Belgrade  <.BELEX  635.  633.   +0.  -1.2
           15>        84    84   32%    8%
 Sofia     <.SOFIX  513.  509.   +0.   +11
           >          73    92   75%  .46%
                    BOND                  
                    S                 
                    Yiel  Yiel  Spre  Dail
                    d     d     ad    y
                    (bid  chan  vs    chan
                    )     ge    Bund  ge
                                      in
 Czech                                spre
 Republic                             ad
   2-year  <CZ2YT=  -0.5  -0.0   +01  -3bp
           RR>        58    21  3bps     s
   5-year  <CZ5YT=  -0.1  -0.0   +03  -2bp
           RR>        95    06  9bps     s
           <CZ10YT  0.25  -0.0   +03  -3bp
 10-year   =RR>             01  7bps     s
 Poland                                   
   2-year  <PL2YT=  #VAL  0.00  #VAL   +0b
           RR>      UE!      7  UE!     ps
   5-year  <PL5YT=  #VAL  0.02  #VAL   +1b
           RR>      UE!      6  UE!     ps
           <PL10YT  #VAL  0.01  #VAL  -1bp
 10-year   =RR>     UE!      5  UE!      s
           FORWARD  RATE  AGREEMENT       
                    3x6   6x9   9x12  3M
                                      inte
                                      rban
                                      k
 Czech     <CZKFRA  0.28  0.25  0.22     0
 Rep       ><PRIBO                    
           R=>                        
 Hungary   <HUFFRA  0.73  0.71  0.71  0.88
           ><BUBOR                    
           =>                         
 Poland    <PLNFRA  1.71  1.68  1.66  1.71
           ><WIBOR     5    25        
           =>                         
 Note:     are for                        
 FRA       ask                        
 quotes    prices                     
 *****************************************
 *********************
 
($1 = 275.3700 forints)

 (Reporting by Sandor Peto; Editing by Toby Chopra)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below