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CEE MARKETS-Banks lead stocks higher, FX off highs despite upbeat data
May 9, 2017 / 1:39 PM / 4 months ago

CEE MARKETS-Banks lead stocks higher, FX off highs despite upbeat data

    * Earnings reports, recommendations help bank stocks
    * Hungary, Czechs report good trade, retail figures
    * Currencies trade off highs as French impact fades
    * Serbian cbank buys euros to drive dinar off 5-month high

 (Recasts with jump in bank stocks and its causes)
    By Sandor Peto and Bartosz Chmielewski
    BUDAPEST/WARSAW, May 9 (Reuters) - Banks led Central
European shares higher on Tuesday, helped by earnings and stock
recommendations, as attention shifted to local factors following
the French presidential election.
    Earnings reports showing profits rose in the first quarter
helped gains in most bank stocks and other equities across the
region, with further positive results expected.
    "Whether the new EU leaders will put more pressure on
(Central Europe) over migration and other things, that is a
long-term question ..." one Budapest-based dealer said.    
    Warsaw's bluechip stock index had risen 1.2 percent by 1259
GMT, mainly driven by a 3.1 percent rise in the shares of PKO BP
bank and a 4.1 percent jump in Pekao, which is
due to publish its first quarter earnings on Wednesday.
    Investors were optimistic over bank stocks after Alior 
 reported an increase in its first-quarter profits,
which lifted its shares by as much as 2 percent.
    Sentiment also improved because JP Morgan raised its target
price for three Polish banks: Alior, Bank Millennium
and MBank.
    Budapest's main stock index jumped 1.6 percent, even
though heavyweight oil group MOL was trading
ex-dividend and fell 1 percent.
    The index was lifted mainly by a 2.7 percent gain in OTP
Bank which will report earnings on Friday.
    The stock traded at 8,135 forints ($28.41). Technical
factors may boost the shares if they can stay above the
8,000-forint line, said Zoltan Varga, analyst of Equilor
brokerage.
    Shares in Hungary's FHB gained 1.4 percent after
Moody's raised its rating for the bank's deposits.
Architecture-design software maker Graphisoft jumped
3.4 percent on increased earnings, while Czech Komercni Banka
 shares firmed 1.5 percent. 
    Regional currencies mostly eased slightly, trading off their
multi-week highs - or in the case of the zloty, a
20-month high - of the past days.
     The Czech crown was flat at 26.668 against the
euro and the forint shed 0.1 percent, even though both
countries reported higher-than-expected trade surpluses for
March and Czech retail sales continued to surge.
     Other Czech data showed that the Czech central bank bought
almost 20 billion euros ($21.8 billion) in March before lifting
its cap on the value of the crown, which had kept the currency
weaker than 27 to the euro since 2013.
    The dinar eased a shade to 123.15 against the euro
after the Serbian central bank bought euros in the market to
weaken the dinar from 5-month highs.    
             CEE        SNAPS   AT  1459          
             MARKETS    HOT    CET           
                        CURRENCIES                
                        Lates  Previ  Daily  Chang
                        t      ous           e
                        bid    close  chang  in
                                      e      2017
 Czech                  26.66  26.66   +0.0  1.27%
 crown                     80     70     0%  
 Hungary                311.9  311.6  -0.11  -1.01
 forint                   700    200      %      %
 Polish                 4.227  4.225  -0.04  4.19%
 zloty                      0      3      %  
 Romanian               4.550  4.549  -0.02  -0.35
 leu                        8      7      %      %
 Croatian               7.422  7.420  -0.02  1.79%
 kuna                       0      5      %  
 Serbian                123.1  123.0  -0.04  0.16%
 dinar                    500    950      %  
 Note:       calculate  previ  close  1800        
 daily       d from     ous    at     CET    
 change                                      
                        STOCK                     
                        S                    
                        Lates  Previ  Daily  Chang
                        t      ous           e
                               close  chang  in
                                      e      2017
 Prague                 1011.  1005.   +0.5   +9.7
                           51     94     5%     5%
 Budapest               33379  32844   +1.6   +4.3
                          .16    .67     3%     0%
 Warsaw                 2403.  2374.   +1.2   +23.
                           38     23     3%    38%
 Bucharest              8329.  8297.   +0.3   +17.
                           40     29     9%    56%
 Ljubljana              780.6  778.2   +0.3   +8.7
                            3      0     1%     8%
 Zagreb                 1894.  1905.  -0.53  -5.01
                           92     02      %      %
 Belgrade    <.BELEX15  715.0  715.7  -0.10  -0.32
             >              4      5      %      %
 Sofia                  662.0  660.8   +0.1   +12.
                            0      1     8%    89%
                        BONDS                     
                        Yield  Yield  Sprea  Daily
                                      d      
                        (bid)  chang  vs     chang
                               e      Bund   e in
 Czech                                       sprea
 Republic                                    d
   2-year    <CZ2YT=RR  -0.13  0.041   +053   +4bp
             >              7           bps      s
   5-year    <CZ5YT=RR  0.026  0.002   +032   +0bp
             >                          bps      s
   10-year   <CZ10YT=R  0.818      0   +039  -1bps
             R>                         bps  
 Poland                                           
   2-year    <PL2YT=RR  1.989  -0.00   +266   +0bp
             >                     3    bps      s
   5-year    <PL5YT=RR  2.903  0.007   +320   +0bp
             >                          bps      s
   10-year   <PL10YT=R  3.468  -0.00   +304  -2bps
             R>                    6    bps  
             FORWARD    RATE   AGREEMENT          
                        3x6    6x9    9x12   3M
                                             inter
                                             bank
 Czech Rep           <   0.35   0.42   0.51      0
             PRIBOR=>                        
 Hungary             <   0.26   0.35   0.45   0.16
             BUBOR=>                         
 Poland              <   1.76    1.8   1.84   1.73
             WIBOR=>                         
 Note: FRA   are for                              
 quotes      ask                             
             prices                          
 *************************************************
 *************
 ($1 = 286.3500 forints)

 (Additional reporting by Luiza Ilie in Bucharest; editing by
Larry King and Alexander Smith)
  
 
 

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