April 12, 2017 / 11:29 AM / 5 months ago

CEE MARKETS-FX, stocks rebound, Agrokor worry knocks down Zagreb assets

    * Prague stocks buck CEE rise as Moneta trades ex-div
    * Daimler earnings, dollar retreat cause some improvement in
mood
    * Geopolitical concerns may return
    * Hungarian bonds firm, still helped by Tuesday's CPI data
    * Croatian stocks fall further on worries over Agrokor group

 (Adds renewed plunge of Croatian assets)
    By Sandor Peto
    BUDAPEST, April 12 (Reuters) - Central European currencies
and some equities gained on Wednesday after geopolitical worries
led investors to sell risky assets in recent weeks.
    A surge in the profit of German auto maker Daimler
, which has a big Mercedes-Benz production plant in
Hungary, improved the mood across European stock markets, said
Monika Kiss, an analyst at Equilor Brokerage in Budapest.
    The dollar, whose strength against the euro has also
weighed on Central European currencies in recent weeks, has also
retreated this week.
    "I would say one-off factors are causing today's relief
rather than a sentiment change," Kiss said. Geopolitical risks
could continue to cast a shadow on markets in the region and in
the world, she said.
    A Budapest-based fixed income trader saw a slight
improvement in risk sentiment and said worries have eased that
France's far right may win the country's upcoming presidential
election.
    "Remaining worries seem to have shifted towards others
(emerging markets) ... while Central Europe looks a bit
decoupled," the trader added.  
    The forint strengthened by 0.2 percent against the
euro by 1036 GMT, shrugging off a warning from the European
Commission that Hungary risked being sued over a number of
policies, including changes to higher education,
non-governmental groups and asylum rules.  
    The zloty and the Czech crown rose 0.1
percent.
    The crown reversed an early slide, a respite from
increased volatility after the Czech central bank removed its
cap on the currency value, 27 to the euro, a week ago.
    Prague's stock index fell 0.9 percent. Other regional
stock indices mostly rose or were flat.
    The decline was down to one share, Moneta Bank,
which fell 8.8 percent to its lowest since January as it traded
ex-dividend.
    Zagreb stocks also bucked the trend, shedding 2.2
percent, after a 26 percent plunge by ice cream and frozen food
maker Ledo. Ledo has lost more than three-fourth of
its market capitalization since October because of troubles at
its main owner, Agrokor group. 
    Moody's downgraded Agrokor on Tuesday, saying that after its
filing for restructuring under Croatian law a default became
"highly likely". 
    The kuna eased 0.1 percent to 7.439 against the
euro. 
    A rise in the stocks of OTP Bank and
pharmaceuticals company Richter helped Budapest's
index gain 0.7 percent.   
              CEE        SNAPS   AT  1236          
              MARKETS    HOT    CET           
                         CURRENCIES                
                         Lates  Previ  Daily  Chang
                         t      ous           e
                         bid    close  chang  in
                                       e      2017
 Czech crown             26.63  26.66   +0.1  1.40%
                            50     10     0%  
 Hungary                 311.6  312.0   +0.1  -0.89
 forint                    000    650     5%      %
 Polish                  4.248  4.251   +0.0  3.66%
 zloty                       6      5     7%  
 Romanian                4.522  4.515  -0.16  0.28%
 leu                         5      1      %  
 Croatian                7.439  7.428  -0.14  1.56%
 kuna                        0      5      %  
 Serbian                 123.7  123.7   +0.0  -0.32
 dinar                     500    550     0%      %
 Note: daily  calculate  previ  close  1800        
 change       d from     ous    at     CET    
                         STOCK                     
                         S                    
                         Lates  Previ  Daily  Chang
                         t      ous           e
                                close  chang  in
                                       e      2017
 Prague                  984.1  992.9  -0.89   +6.7
                             2      5      %     8%
 Budapest                32493  32199   +0.9   +1.5
                           .31    .15     1%     3%
 Warsaw                  2216.  2221.  -0.24   +13.
                            47     82      %    79%
 Bucharest               8224.  8200.   +0.3   +16.
                            73     18     0%    09%
 Ljubljana               781.6  781.1   +0.0   +8.9
                             0      5     6%     2%
 Zagreb                  1896.  1939.  -2.24  -4.94
                            31     72      %      %
 Belgrade     <.BELEX15  731.1  734.0  -0.38   +1.9
              >              8      0      %     3%
 Sofia                   658.2  656.4   +0.2   +12.
                             7      5     8%    25%
                         BONDS                     
                         Yield  Yield  Sprea  Daily
                                       d      
                         (bid)  chang  vs     chang
                                e      Bund   e in
 Czech                                        sprea
 Republic                                     d
   2-year     <CZ2YT=RR  -0.02  0.022   +082   +3bp
              >              2           bps      s
   5-year     <CZ5YT=RR  0.305  0.047   +081   +5bp
              >                          bps      s
   10-year    <CZ10YT=R   1.02  0.006   +081   +0bp
              R>                         bps      s
 Poland                                            
   2-year     <PL2YT=RR  2.021  -0.01   +287  -1bps
              >                     3    bps  
   5-year     <PL5YT=RR  2.909  0.021   +342   +2bp
              >                          bps      s
   10-year    <PL10YT=R  3.477  0.035   +327   +3bp
              R>                         bps      s
              FORWARD    RATE   AGREEMENT          
                         3x6    6x9    9x12   3M
                                              inter
                                              bank
 Czech Rep            <    0.3   0.34   0.44      0
              PRIBOR=>                        
 Hungary              <   0.21   0.26   0.34   0.16
              BUBOR=>                         
 Poland               <   1.75  1.771  1.808   1.73
              WIBOR=>                         
 Note: FRA    are for                              
 quotes       ask                             
              prices                          
 **************************************************
 ************
 
 (Additional reporting by Jan Lopatka in Prague and Igor Ilic in
Zagreb; Editing by Larry King)
  
 
 

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