May 11, 2017 / 2:03 PM / 2 months ago

CEE MARKETS-Bucharest stocks hit 9-year high, Hungary lifts bond auction sale

7 Min Read

    * Stocks rise, earnings reports have been positive
    * Bucharest stocks at 9-year high, partly on Digi IPO
    * Romanian inflation rises, leu underperforms
    * Bond yields decline, Hungary sells more bond than planned

 (Adds bond markets)
    By Sandor Peto
    BUDAPEST, May 11 (Reuters) - Stocks hit a nine-year high in
Bucharest and a 20-month high in Prague on Thursday as Central
European equities were buoyed by corporate earnings reports and
a major IPO in Romania.
    Cable and internet provider Digi Communication N.V. closed
one of the biggest initial public offerings (IPO) in the history
of the Bucharest bourse on Wednesday.
    The index gained 0.6 percent, helped by rises in OMV
Petrom, Romania's top oil and gas firm, and gas
producer Romgaz. Both firms reported a jump in
first-quarter net profits.
    Earnings reports and company outlooks in the region have so
far exceeded expectations, partly helping the index of
Warsaw-listed banks hit a 2-year high earlier this week.
    Warsaw's blue-chip index rose 0.3 percent, driven
by power utility PGE which will release its earnings
report after the market closes. The shares were up 5.2 percent.
A number of blue chips around the region have risen ahead of
their earnings announcements as investors anticipate solid
results.
    Prague's index hit a 20-month high despite turmoil in
the Czech government, after a batch of upbeat earning reports
from firms including energy group CEZ and Moneta Bank
.
    Slovenia's Krka, one of the region's biggest drug
makers, gained 1.4 percent after reporting a rise in
first-quarter net profits.
    Currencies mostly firmed slightly in the region, with the
Czech crown and the forint trading near
one-month highs.
    Government bonds were mixed, with Hungary's 10-year yields
touching and the corresponding Polish yield approaching 5-month
lows.
    Hungarian bond yields fell 4 to 6 basis points along the
curve, still helped by lower-than-expected April inflation
figures released on Wednesday. 
    "Some risk appetite has returned (helping regional bond
markets), now that the French elections have passed," one
Budapest-based trader said.
    The government sold bonds worth 68.4 billion forints at its
auctions on Thursday, 23 billion forints more than planned.
    Romania's debt auctions have also drawn healthy demand in
recent weeks. The country's 10-year bond yield, bid at 3.92
percent, remains well above Hungary's 3.06 percent.
    The leu has been clearly underperforming regional
peers in the past weeks due to worries that a government drive
to lift wages could boost the budget deficit and inflation. It
traded slightly firmer at 4.5465 against the euro, still near
6-week lows touched on Wednesday.
    Romanian inflation is still low in regional terms, but a
rebound to an annual rate of 0.6 percent in April, reported on
Thursday, "suggests that inflationary pressures are starting to
become more visible", ING analysts said in a note.
    
             CEE        SNAPS   AT  1516          
             MARKETS    HOT    CET           
                        CURRENCIES                
                        Lates  Previ  Daily  Chang
                        t      ous           e
                        bid    close  chang  in
                                      e      2017
 Czech                  26.56  26.57   +0.0  1.68%
 crown                     00     50     6%  
 Hungary                310.3  310.6   +0.0  -0.50
 forint                   800    650     9%      %
 Polish                 4.219  4.216  -0.09  4.36%
 zloty                      9      3      %  
 Romanian               4.546  4.551   +0.1  -0.25
 leu                        5      1     0%      %
 Croatian               7.420  7.418  -0.03  1.81%
 kuna                       6      5      %  
 Serbian                123.0  123.1   +0.0  0.24%
 dinar                    500    550     9%  
 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                 1013.  1010.   +0.3   +9.9
                           30     02     2%     5%
 Budapest               33836  33666   +0.5   +5.7
                          .29    .28     0%     3%
 Warsaw                 2386.  2380.   +0.2   +22.
                           95     25     8%    54%
 Bucharest              8371.  8319.   +0.6   +18.
                           35     66     2%    16%
 Ljubljana              789.1  781.6   +0.9   +9.9
                            1      1     6%     7%
 Zagreb                 1888.  1897.  -0.47  -5.35
                           09     07      %      %
 Belgrade    <.BELEX15  729.1  724.8   +0.5   +1.6
             >              3      8     9%     4%
 Sofia                  655.3  658.0  -0.41   +11.
                            6      6      %    75%
                        BONDS                     
                        Yield  Yield  Sprea  Daily
                                      d      
                        (bid)  chang  vs     chang
                               e      Bund   e in
 Czech                                       sprea
 Republic                                    d
   2-year    <CZ2YT=RR  -0.02   0.11   +063   +10b
             >              3           bps     ps
   5-year    <CZ5YT=RR  0.012  0.019   +029   +0bp
             >                          bps      s
   10-year   <CZ10YT=R  0.818      0   +037  -4bps
             R>                         bps  
 Poland                                           
   2-year    <PL2YT=RR  1.989  -0.01   +264  -3bps
             >                     9    bps  
   5-year    <PL5YT=RR  2.856  0.001   +314  -2bps
             >                          bps  
   10-year   <PL10YT=R  3.398  -0.02   +295  -7bps
             R>                    9    bps  
             FORWARD    RATE   AGREEMENT          
                        3x6    6x9    9x12   3M
                                             inter
                                             bank
 Czech Rep           <   0.34   0.42   0.51      0
             PRIBOR=>                        
 Hungary             <    0.2   0.26   0.35   0.16
             BUBOR=>                         
 Poland              <  1.753  1.775  1.821   1.73
             WIBOR=>                         
 Note: FRA   are for                              
 quotes      ask                             
             prices                          
 *************************************************
 *************
 

 (Additional reporting by Luiza Ilie in Bucharest and Bartosz
Chmielewski in Warsaw; Editing by Toby Chopra and Hugh Lawson)
  
 
 

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