December 8, 2016 / 10:23 AM / 7 months ago

CEE MARKETS-Warsaw stocks hit 6-month high as PZU buys UniCredit unit

7 Min Read

* Polish stocks rise on failure of bank deal, success of
other
    * Alior will not buy Raiffeisen unit, no need for new shares
    * State firms to buy UniCredit's Polish bank unit
    * Most assets pause before ECB meet, Hungary holds bond
auction
    * Serbian central bank seen keeping rates on hold

    By Sandor Peto and Bartosz Chmielewski
    BUDAPEST/WARSAW, Dec 8 (Reuters) - Polish stocks 
briefly surged to a six-month high on Thursday after
state-controlled firms announced a deal to buy Italian
UniCredit's Polish bank unit.
    UniCredit will sell a 33 percent stake in Poland's second
biggest bank Pekao to two Polish state entities
including insurer PZU for $2.6 billion. 
    Meanwhile Alior, a bank controlled by PZU, walked
away from buying the Polish unit of Austria's Raiffeisen bank.
 
    Poland's conservative ruling Law and Justice party (PiS)
took power a year ago pledging "polonisation", boosting the
influence of Polish owners and the state in certain sectors
dominated by foreigners.
    Poland is following in the footsteps of Hungary, also a
former communist member of the European Union, where Prime
Minister Viktor Orban's government has renationalised several
utilities and banks.
    "The historic exit from Poland by a major Italian bank marks
a turn that reflects an EU-wide home-bias tendency," said Simon
Quijano-Evans, strategist of Legal & General Investment
Management, in a note.
    The Polish bank deals end months of uncertainty.
    The stocks of Alior, which earlier bought BPH, another
Polish bank, jumped more than 10 percent on relief that now it
will not need to issue new shares to finance buying the
Raiffeisen unit.
    PZU gained almost 4 percent.
    Warsaw's bluechip index jumped to a six-month high
before it flattened out by 0929 GMT.
    Central European asset prices were mostly treading water
ahead of the European Central Bank's (ECB) meeting, where it is
expected to extend its generous asset buys but may also send a
signal about the eventual end of the programme. 
    More stimulus from the ECB could also help stoke demand for
assets in the EU's eastern wing.
    That expectation lifted the region's most liquid currencies,
the zloty and the forint, as well as regional government bonds
earlier this week, but that rise had lost steam by Thursday and
most stocks also moved sideways.
    A government bond auction in Prague drew robust demand on
Wednesday and the same is likely to happen at Hungary's sale on
Thursday, one trader said.
    Hungary's annual inflation hit a three-year high of 1.1
percent, data showed, but analysts said that is unlikely to
deter the central bank from its liquidity-boosting policies.
    Serbia's central bank is expected to keep the region's
highest interest rates on hold at its meeting as the prospect of
monetary tightening by the U.S. Federal Reserve outweighs any
concerns about low inflation.   
           CEE      SNAP   AT  1029       
           MARKETS  SHOT  CET         
                    CURRENCIES            
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                    bid   clos  chan  in
                          e     ge    2016
 Czech     <EURCZK  27.0  27.0  -0.0  -0.1
 crown     =>        440   345    4%    7%
 Hungary   <EURHUF  313.  313.   +0.  0.37
 forint    =>       4900  6400   05%     %
 Polish    <EURPLN  4.43  4.43   +0.  -4.0
 zloty     =>         60    89   06%    1%
 Romanian  <EURRON  4.50  4.49  -0.0  0.42
 leu       =>         00    85    3%     %
 Croatian  <EURHRK  7.53  7.53   +0.  1.38
 kuna      =>         50    75   03%     %
 Serbian   <EURRSD  123.  123.   +0.  -1.4
 dinar     =>       3000  3800   06%    8%
 Note:     calcula  prev  clos  1800      
 daily     ted      ious  e at  CET   
 change    from                       
                    STOC                  
                    KS                
                    Late  Prev  Dail  Chan
                    st    ious  y     ge
                          clos  chan  in
                          e     ge    2016
 Prague             895.  894.   +0.  -6.3
                      36    24   13%    8%
 Budapest           3022  3015   +0.   +26
                    1.20  2.01   23%  .34%
 Warsaw    <.WIG20  1888  1889  -0.0   +1.
           >         .45   .51    6%   58%
 Buchares           6864  6874  -0.1  -2.0
 t                   .56   .31    4%    0%
 Ljubljan  <.SBITO  706.  708.  -0.2   +1.
 a         P>         83    65    6%   53%
 Zagreb    <.CRBEX  1983  1988  -0.2   +17
           >         .48   .47    5%  .39%
 Belgrade  <.BELEX  713.  714.  -0.1   +10
           15>        84    78    3%  .83%
 Sofia     <.SOFIX  579.  577.   +0.   +25
           >          95    02   51%  .83%
                    BOND                  
                    S                 
                    Yiel  Yiel  Spre  Dail
                    d     d     ad    y
                    (bid  chan  vs    chan
                    )     ge    Bund  ge
                                      in
 Czech                                spre
 Republic                             ad
   2-year  <CZ2YT=  -0.7  0.00  -006  -2bp
           RR>        22     3   bps     s
   5-year  <CZ5YT=  -0.1  -0.0   +02  -3bp
           RR>        44    03  0bps     s
           <CZ10YT  0.56  -0.0   +02  -2bp
 10-year   =RR>        2    01  0bps     s
 Poland                                   
   2-year  <PL2YT=  1.96  0.02   +26   +0b
           RR>         4        2bps    ps
   5-year  <PL5YT=  2.86  0.00   +32  -2bp
           RR>         2     6  0bps     s
           <PL10YT  3.56  0.01   +32   +0b
 10-year   =RR>        5     8  0bps    ps
           FORWARD  RATE  AGREEMENT       
                    3x6   6x9   9x12  3M
                                      inte
                                      rban
                                      k
 Czech     <CZKFRA  0.29  0.27  0.26     0
 Rep       ><PRIBO                    
           R=>                        
 Hungary   <HUFFRA  0.39  0.42  0.52  0.43
           ><BUBOR                    
           =>                         
 Poland    <PLNFRA  1.75  1.77   1.8  1.73
           ><WIBOR                    
           =>                         
 Note:     are for                        
 FRA       ask                        
 quotes    prices                     
 *****************************************
 *********************
 
 (Additional reporting from Radu Marinas in Bucharest and Jakub
Iglewski in Warsaw; Editing by Gareth Jones)

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