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CEE MARKETS-Warsaw leads stocks rise but zloty eases
February 13, 2017 / 11:20 AM / 7 months ago

CEE MARKETS-Warsaw leads stocks rise but zloty eases

* Higher copper price, company earnings help Polish shares
    * Currencies and bonds ease

    By Sandor Peto
    BUDAPEST, Feb 13 (Reuters) - Central European stocks were
mostly firmer on Monday, led by Warsaw's bluechip index which
set a 17-month high on the back of higher copper prices and
strong company earnings.
    The regional trend was in line with a global rise in shares
due to expectations of economic stimulus in the United States.
Prague's main index was at its highest since late 2015.
    Budapest shares also touched a new record, helped by
a rise in OTP Bank shares through the 9,000 forint
($31.06) mark to hit their highest point since 2007.
    Warsaw's index rose 1.3 percent by 1105 GMT, with
copper producer KGHM firming 2.4 percent, after the
metal reached 20-month highs in London trade. 
    Power group PGE rose 3.8 percent after reporting 
strong 2016 earnings. 
    The Polish move extended a rally last week that was driven
by banks, due to better than expected earnings and comments from
the ruling party's head, Jaroslaw Kaczynski.
    He said on Friday that mortgage-holders who had borrowed in
Swiss francs should turn to the courts to seek redress for the
pain of increased repayments rather than expect the government
to impose a settlement on banks. 
    The recovery in stocks has also helped the zloty 
strengthen in recent months, but it has become stuck this month
around 4.3 to the euro.
    "Without any substantial long dollar risk to be unwound, EM
(emerging markets) will need an improvement in the narrative
around growth and profitability for capital flows to recover and
for FX to meaningfully strengthen over the medium term," said 
Societe Generale analyst Jason Daw in a note.
    The zloty eased 0.25 percent on Monday. The forint 
and the leu also eased a shade. They have also been
rangebound for weeks, except for a dip by the leu due to
political jitters.
    The Romanian unit visited 7-month lows early this month amid
huge street protests against a government decree to
decriminalize some graft offences.
    The decree has since been withdrawn. On Sunday at least
50,000 people demonstrated against the government in Bucharest,
but that was a much smaller crowd than the earlier rallies.
 
    Bucharest stocks eased 0.4 percent, giving up some
ground after reaching a 19-month high last week.
    Government bonds eased slightly across the region, with
Poland's 10-year yield rising 3 basis points to 3.85 percent,
tracking a rise in yields across Europe.
    International sentiment was unhelpful to bonds, with
concerns over Greek debt and upcoming elections in France, one
Budapest-based fixed income trader said.     
 
              CEE        SNAPS   AT  1205          
              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     50     1%      %
 Hungary                 308.2  308.2  -0.01  0.18%
 forint                    800    350      %  
 Polish                  4.318  4.307  -0.25  1.99%
 zloty                       0      2      %  
 Romanian                4.502  4.499  -0.06  0.73%
 leu                         0      5      %  
 Croatian                7.445  7.455   +0.1  1.48%
 kuna                        0      5     4%  
 Serbian                 123.9  123.8  -0.09  -0.51
 dinar                     800    700      %      %
 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                  965.0  964.3   +0.0   +4.7
                             4      1     8%     1%
 Budapest                33238  33156   +0.2   +3.8
                           .42    .09     5%     6%
 Warsaw                  2182.  2154.   +1.2   +12.
                            31     79     8%    03%
 Bucharest               7638.  7668.  -0.40   +7.8
                            22     55      %     1%
 Ljubljana               758.2  755.4   +0.3   +5.6
                             8      9     7%     7%
 Zagreb                  2149.  2163.  -0.65   +7.7
                            01     03      %     3%
 Belgrade     <.BELEX15  703.2  702.5   +0.1  -1.97
              >              5      8     0%      %
 Sofia                   604.5  604.4   +0.0   +3.0
                             6      7     1%     9%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.56  -0.00   +023   +0bp
              >              5      9    bps      s
   5-year     <CZ5YT=RR  0.107  -0.03   +054  -3bps
              >                     1    bps  
   10-year    <CZ10YT=R  0.506  -0.01   +018  -3bps
              R>                    6    bps  
 Poland                                            
   2-year     <PL2YT=RR  2.248  0.037   +304   +4bp
              >                          bps      s
   5-year     <PL5YT=RR  3.188  0.035   +363   +3bp
              >                          bps      s
   10-year    <PL10YT=R  3.854  0.021   +353   +1bp
              R>                         bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.26   0.26    0.3      0
              PRIBOR=>                        
 Hungary              <   0.36    0.5   0.63   0.24
              BUBOR=>                         
 Poland               <   1.76   1.81    1.9   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
     

($1 = 289.7500 forints)

 (Reporting by Sandor Peto; Editing by Mark Trevelyan)

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