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CEE MARKETS-Richter pushes Budapest stocks to new all-time high
January 5, 2017 / 10:34 AM / 9 months ago

CEE MARKETS-Richter pushes Budapest stocks to new all-time high

By Marton Dunai
    BUDAPEST, Jan 5 (Reuters) - Hungarian stocks hit another
all-time high on Thursday, the fourth record in as many
sessions, on the back of a strong showing by drug maker Richter,
which said it planned to boost its global standing after a
strong year last year.
    Richter gained 1.7 percent, outperforming peers,
after CEO Erik Bogsch said the company planned to be "much more
aggressive" in female health care product acquisitions and
strengthen its footing in Latin America and China. 
    Oil group MOL, which led gains on Wednesday,
corrected a little, while the country's top bank OTP 
extended gains slightly after reaching a fresh nine-year high
earlier this week.
    Hungarian stocks were up 0.2 percent at 0935 GMT, with
Warsaw down a third of a percent and Prague flat.
    Currencies were weaker or little changed with regional units
tracking the EUR/USD cross, a dealer said in Budapest. Hungary's
forint fell slightly against the euro, following the dollar's
gains most closely, he said.
    "All eyes are on the U.S., where interest rates are back to
positive territory and moves are plausible both from the Fed and
obviously with the incoming new President," the dealer said.
"Europe, and euro exchange rates, are less interesting."
    In the Czech Republic, where the central bank has kept the
crown from strengthening past 27 against the euro, a senior
policy maker said it did not have to strengthen sharply after
the intervention ends.
    Bank Vice-Governor Vladimir Tomsik said in an article
published by Hospodarske Noviny the bank needs to lock in its
2-percent inflation target before abandoning the regime.
 
    Romania's leu might benefit in the longer run from a calmer
political period after a Social Democrat-led coalition
government won a vote of confidence in parliament on Wednesday,
returning to power after a one-year break. 
    While there are concerns over sharp fiscal slippage and the
rule of law, these have yet to materialise. Markets' attention
will be focused on the 2017 budget plan, likely to be approved
later this month.
    "With a new government sworn in late yesterday, a calmer
domestic political backdrop and favourable regional trends, the
Romanian currency could continue to strengthen in the following
period," ING said in a note to clients.    


               CEE MARKETS  SNAPSHOT    AT  1035 CET           
                            CURRENCIES                         
                            Latest     Previous  Daily   Change
                            bid        close     change  in
                                                         2017
 Czech crown                  27.0200   27.0245   +0.02  -0.05%
                                                      %  
 Hungary                     308.8500  307.8750  -0.32%  -0.01%
 forint                                                  
 Polish zloty                  4.3775    4.3705  -0.16%   0.60%
 Romanian leu                  4.5080    4.5082   +0.00   0.60%
                                                      %  
 Croatian                      7.5780    7.5745  -0.05%  -0.30%
 kuna                                                    
 Serbian                     123.5700  123.6200   +0.04  -0.18%
 dinar                                                %  
 Note: daily   calculated   previous   close at  1800          
 change        from                              CET     
                            STOCKS                             
                            Latest     Previous  Daily   Change
                                       close     change  in
                                                         2017
 Prague                        934.44    934.21   +0.02   +1.39
                                                      %       %
 Budapest                    32706.03  32649.04   +0.17   +2.20
                                                      %       %
 Warsaw                       1993.31   1999.93  -0.33%   +2.33
                                                              %
 Bucharest                    7223.75   7215.49   +0.11   +1.96
                                                      %       %
 Ljubljana                     716.74    715.33   +0.20  -0.12%
                                                      %  
 Zagreb                       2021.47   2022.98  -0.07%   +1.33
                                                              %
 Belgrade                      717.85    716.56   +0.18   +0.07
                                                      %       %
 Sofia                         589.50    588.99   +0.09   +0.52
                                                      %       %
                            BONDS                              
                            Yield      Yield     Spread  Daily
                            (bid)      change    vs      change
                                                 Bund    in
 Czech                                                   spread
 Republic                                                
   2-year                      -0.925      0.03  -016bp   +2bps
                                                      s  
   5-year                      -0.201     0.005   +031b   +0bps
                                                     ps  
   10-year                      0.485    -0.016   +020b   -2bps
                                                     ps  
 Poland                                                        
   2-year                       2.123    -0.003   +289b   -1bps
                                                     ps  
   5-year                       2.988    -0.018   +350b   -3bps
                                                     ps  
   10-year                      3.704    -0.005   +342b   -1bps
                                                     ps  
               FORWARD      RATE       AGREEMENT               
                            3x6        6x9       9x12    3M
                                                         interb
                                                         ank
 Czech Rep             <PR        0.2      0.15    0.13       0
               IBOR=>                                    
 Hungary               <BU       0.37      0.42    0.49    0.35
               BOR=>                                     
 Poland                <WI      1.775    1.8325     1.9    1.73
               BOR=>                                     
 Note: FRA     are for ask                                     
 quotes        prices                                    
 **************************************************************
 

 (Reporting by Reuters bureaux)

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