Company News

CEE MARKETS-Crown hits 4-1/2 month low after COVID-19 curbs tightened

    PRAGUE, Oct 13 (Reuters) - The crown fell to its lowest
levels since the end of May on Tuesday after the Czech
government sharply tightened curbs to stop what is Europe's
fastest spread of new coronavirus cases.
    Other assets in central Europe were mixed, with Hungary's
forint creeping lower, down 0.3% at 358.87 to the euro
at 0831 GMT, and Poland's zloty nudging up to 4.475
per euro. Both have gained over 1% since the start of October.
    But the crown has been falling as the number of COVID-19
cases spirals in the country and infections are spreading at
Europe's fastest rate per capita.
    The crown dropped 0.6% to 27.35 per euro, its
lowest since May 25.
    The Czech government late on Monday ordered bars,
restaurants and clubs closed from Wednesday and shifted schools
to distance learning. Public gatherings will also be limited to
six people and alcohol consumption in public will be banned.

    On the Czech stock market, banking stocks
 and soft drink maker Kofola Ceskoslovensko
were among the main fallers. 
    While the new measures were not the full lockdown on
businesses seen early in the pandemic, helping it get through
the first wave with relatively low case numbers, they still
caught some investors as being tougher than expected.
    Analysts expect the crown to remain on the defensive for
    "We still believe that the government will get the spread of
the coronavirus under control and that the crown should make up
some lost ground until year-end," Raiffeisen said.
    Raiffeisen said the Czechs have been "a canary in a coal
mine" for the rest of the region, which is also experiencing a
rise in COVID-19 cases.
    Elsewhere on markets, Hungary's central bank on Tuesday
offered to buy 10-, 15- and 20-year bonds from banks.
    The National Bank of Hungary modified the parameters of its
asset purchase programme last week, raising the limit on its
holdings in any bond series to 50% from 33% and extending the
range of eligible assets to government-guaranteed debt
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1031              
                            Latest   Previou  Daily    Change
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  27.3500  27.1920   -0.58%   -7.01%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  358.870  357.690   -0.33%   -7.73%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4750   4.4764   +0.03%   -4.88%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8730   4.8728   -0.00%   -1.74%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5720   7.5703   -0.02%   -1.67%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.470  117.570   +0.09%   +0.09%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change STOCKS                                     
                            Latest   Previou  Daily    Change
                                     close    change   in 2020
 .PX     Prague              866.49  870.270   -0.43%  -22.33%
 .BUX    Budapest           33136.9  33097.0   +0.12%  -28.09%
                                  0        1           
 .WIG20  Warsaw    <.WIG20  1671.03  1683.21   -0.72%  -22.28%
 .BETI   Buchares           8859.36  8887.41   -0.32%  -11.20%
 .SBITO  Ljubljan  <.SBITO   835.37   834.62   +0.09%   -9.77%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1614.87  1615.86   -0.06%  -19.95%
 .BELEX  Belgrade  <.BELEX   689.85   690.09   -0.03%  -13.95%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   425.47   425.93   -0.11%  -25.11%
                   > BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
         Czech                                         spread
 CZ2YT=    2-year  <CZ2YT=   0.0830  -0.0210   +081bp    -2bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.5580  -0.0500   +131bp    -4bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   0.9640  -0.0300   +151bp    -2bps
 =RR     10-year   =RR>                             s  
 PL2YT=    2-year  <PL2YT=   0.0210  -0.0130   +075bp    -1bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.5140  -0.0190   +126bp    -1bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.2710  -0.0210   +182bp    -1bps
 =RR     10-year   =RR>                             s  
                            3x6      6x9      9x12     3M
         Czech     <CZKFRA     0.25     0.22     0.24     0.35
         Rep       ><PRIBO                             
         Hungary   <HUFFRA     0.87     0.91     0.92     0.76
         Poland    <PLNFRA     0.19     0.16     0.16     0.22
         Note: FRA quotes are for                             
         ask prices                                    
         ****************** (Reporting by Anita Komuves in Budapest and Jason Hovet in
Editing by Susan Fenton)