* Stocks mostly drop on corporate news, EU sentiment
* Warsaw's PZU leads equities decline
* Currencies, bonds shrug off Draghi's dovish comments
By Sandor Peto
BUDAPEST, May 30 Warsaw lead a retreat of
Central European shares as investors, underwhelmed by dividend
payments and takeover offers announced by some companies on
Tuesday, booked profits from multi-year highs of recent weeks.
Worries over the vote in Italy weighed on investor sentiment
across Europe, though its main impact was on bank shares in the
Central Europe's main equities indices reached multi-year
highs earlier this month, helped by reports of good
first-quarter earnings and dividend payments.
Bucharest retained its momentum and again set a new
nine-year high on Tuesday, but Warsaw shed 1 percent,
Prague 0.6 percent and Budapest 0.4 percent by 0848
The decline in Warsaw was led by PZU, the biggest
Polish insurer, whose stocks fell by about 3 percent after it
said it would pay a dividend of 1.4 zlotys ($0.3740) per share.
PZU shares hit two-year highs hit last week.
"The market seems to be disappointed by the amount of
dividend," said Jaroslaw Janusz, broker at Nobel Securities.
An announcement by Polish pensions fund Aviva OFE that it
had reduced its stake in PZU to below 5 percent may also be
driving shares lower, Janusz said.
Polish state-run energy firm PGNiG also shed 3
percent after surging last week due to good first-quarter
Elsewhere, the shares of Hungarian mortgage lender FHB
fell 2.8 percent after an offer from Takarekbank to
buy out shares at 533 forints ($1.93) each.
Czech oil group Unipetrol shares, trading
ex-dividend, fell 2.5 percent.
Regional currency and government bond markets were mixed and
directionless, shrugging off comments from European Central Bank
head Mario Draghi that the euro zone still needs substantial
stimulus given that growth is improving but inflation remains
In past years such dovish comments would often have lifted
However, in Hungary the central bank's loose policies have
already pushed yields to very low levels, with the short end of
the curve trading near record lows, traders said.
"The Draghi comments were not a game changer," one said.
"They (the ECB) often talk more than they act."
The forint and the kuna eased a shade
against the euro, even though Hungary reported a surge in
first-quarter investments, while Croatia's industrial output
fell 0.6 percent in annual terms in April.
CEE MARKETS SNAPSH AT 1048 CET
Latest Previo Daily Change
bid close change in
Czech crown 26.517 26.500 -0.06% 1.85%
Hungary 308.20 308.00 -0.06% 0.20%
forint 00 50
Polish zloty 4.1825 4.1841 +0.04 5.29%
Romanian leu 4.5650 4.5658 +0.02 -0.66%
Croatian kuna 7.4210 7.4145 -0.09% 1.81%
Serbian dinar 122.54 122.67 +0.11 0.66%
00 00 %
Note: daily calculated previo close 1800
change from us at CET
Latest Previo Daily Change
close change in
Prague 1006.7 1012.9 -0.61% +9.24
3 0 %
Budapest 33997. 34138. -0.41% +6.23
37 11 %
Warsaw 2300.7 2323.5 -0.98% +18.1
3 8 1%
Bucharest 8719.2 8673.5 +0.53 +23.0
2 0 % 7%
Ljubljana 780.49 785.95 -0.69% +8.77
Zagreb 1856.6 1853.4 +0.18 -6.93%
9 2 %
Belgrade 718.95 717.64 +0.18 +0.22
Sofia 652.49 655.51 -0.46% +11.2
Yield Yield Spread Daily
(bid) change vs change
2-year -0.094 0.089 +061b +8bps
5-year -0.071 -0.008 +036b -2bps
10-year 0.749 -0.01 +044b -2bps
2-year 1.922 -0.092 +263b -10bps
5-year 2.704 0.009 +313b +0bps
10-year 3.28 0.007 +297b +0bps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
Czech Rep <PR 0.36 0.42 0.49 0
Hungary <BU 0.19 0.23 0.29 0.15
Poland <WI 1.752 1.78 1.807 1.73
Note: FRA are for ask
(Additional reporting by Bartosz Chmielewski in Warsaw; Editing
by Raissa Kasolowsky)