Reuters logo
CEE MARKETS-Stocks rise slightly, Polish bonds ease a shade
February 20, 2017 / 10:21 AM / 8 months ago

CEE MARKETS-Stocks rise slightly, Polish bonds ease a shade

    * Stocks rise slightly, Moneta Bank rise helps Prague
    * Serbian assets mixed after PM says will run for presidency
    * Polish bonds mildly softer after strong output data

    By Sandor Peto
    BUDAPEST, Feb 20 (Reuters) - Prague led a cautious rise in
Central European equities on Monday, mainly driven by the gains
of Moneta Money Bank, while Central European assets
were mostly moving sideways.
    Prague's main index firmed 0.4 percent by 0929 GMT.
    Moneta shares rose 1.2 percent to 85.85 Czech crowns 
($3.38), after JP Morgan raised its target price to 100 from 92
crowns.
    Earlier this month the stock rose to all-time highs after
Moneta reported higher-than-expected fourth-quarter earnings and
proposed a high dividend payment to shareholders.
    Good earnings from Central European banks, coupled with a
rally in international equities markets, helped the region's
main stock indexes reach their highest levels since 2015 - or in
the case of Budapest, record highs - in the past weeks.
    Profit-taking pared those gains on Friday. Regional markets
lacked momentum on Monday as U.S. markets remain closed due to
the Presidents Day holiday.
    The forint and the zloty firmed 0.1
percent against the euro and the leu was flat.
    Serbian markets were mixed after Prime Minister Aleksandar
Vucic agreed late on Friday to run for the presidency in
elections tentatively slated for April.
    Vucic as president instead of incumbent Tomislav Nikolic
could mean a quicker advance towards EU accession and a further
improvement of Serbia's ties with NATO, despite its military
neutrality.
    The dinar firmed slightly and Belgrade shares
 eased 0.3 percent.
    Polish government bond yields were flat or a touch higher.
    A surge in industrial output and retail sales in January
increases the odds that the Polish central bank could start to
lift interest rates before 2018 and that could weigh on bonds.
    But a rise in inflation in Poland has been fuelled by
one-off factors, therefore the bank is unlikely to bring forward
rate tightening, Raiffeisen analyst Stephan Imre said in a note.
    Erste analysts raised their inflation forecasts for Hungary
and Slovakia, but said in a note that inflation, forecast at an
average 1.6 percent in Central Europe for this year, does not
threaten inflation targets in the region.
    "Therefore, monetary policy should not react quickly, apart
from the Czech Republic, where the high inflation will likely
prompt the CNB to exit the FX regime in April," they said. 
    "In Romania and Poland, we see a likely tightening only next
year, while in Hungary, as reinforced by recent central banker
comments, the easing bias should remain rather strong," they
added.
    
              CEE        SNAPS   AT  1029          
              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     10     0%      %
 Hungary                 308.2  308.3   +0.0  0.20%
 forint                    000    950     6%  
 Polish                  4.329  4.332   +0.0  1.73%
 zloty                       0      7     9%  
 Romanian                4.526  4.524  -0.03  0.20%
 leu                         0      9      %  
 Croatian                7.448  7.439  -0.11  1.44%
 kuna                        0      5      %  
 Serbian                 123.8  124.0   +0.1  -0.43
 dinar                     800    500     4%      %
 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                  973.3  970.0   +0.3   +5.6
                             6      1     5%     2%
 Budapest                33912  33828   +0.2   +5.9
                           .05    .86     5%     7%
 Warsaw                  2191.  2188.   +0.1   +12.
                            11     30     3%    48%
 Bucharest               7768.  7745.   +0.3   +9.6
                            94     39     0%     5%
 Ljubljana               761.4  762.6  -0.15   +6.1
                             7      3      %     1%
 Zagreb                  2190.  2192.  -0.08   +9.8
                            99     75      %     3%
 Belgrade     <.BELEX15  707.6  709.8  -0.31  -1.35
              >              6      9      %      %
 Sofia                   597.3  597.0   +0.0   +1.8
                             8      1     6%     7%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.41  -0.01   +040  -2bps
              >              6      5    bps  
   5-year     <CZ5YT=RR  0.226  -0.04   +068  -5bps
              >                     3    bps  
   10-year    <CZ10YT=R  0.655  0.009   +034  -1bps
              R>                         bps  
 Poland                                            
   2-year     <PL2YT=RR  2.253  0.018   +307   +1bp
              >                          bps      s
   5-year     <PL5YT=RR  3.189  0.001   +365  -1bps
              >                          bps  
   10-year    <PL10YT=R  3.852  0.023   +354   +1bp
              R>                         bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <   0.27    0.3   0.35      0
              PRIBOR=>                        
 Hungary              <   0.36   0.55   0.69   0.24
              BUBOR=>                         
 Poland               <  1.765  1.805  1.895   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 
($1 = 25.4060 Czech crowns)

 (Reporting by Sandor Peto; Editing by Robin Pomeroy)
  
 
 

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