* Political uncertainty fuels profit taking in CEE stock
* Hungarian haulage firm Waberer's announces rare IPO
* Bonds firms slightly, Polish central bank seen holding
By Sandor Peto
BUDAPEST, June 6 Central European stocks fell on
Tuesday despite a rare initial public offering (IPO) announced
in Budapest, ahead of elections in Britain and France and as
some Arab states severed ties with Qatar.
Political uncertainty weighed on stock markets globally, and
equities in the eastern states of the European Union fell in
line with Western peers.
Investors also used the negative sentiment for some
Budapest's main index hit record highs last week and
now dances around the key 35,000-point mark, and in Bucharest
whose index is retreating from its highest levels since
Budapest shed 0.6 percent by 0939 GMT even though road
transport firm Waberer's International announced that it planned
to raise 50 million euros ($56 million) in fresh capital in a
initial public offering (IPO), and listing in Budapest.
Apart from Warsaw, Central Europe's biggest bourse, IPO's
are rare in the region.
Successful IPO's were Moneta bank in Prague last
year and cable and internet provider DIGI Communications N.V
in Bucharest last month.
Raiffeisen's Polish unit and debt collector GetBack consider
IPOs in Warsaw.
Waberer's planned listing could make it the fifth biggest
stock on the Budapest Stock Exchange and fuel foreign investors'
interest in the bourse, market participants said.
Waberer's is one of the biggest road haulage companies in
It will face difficulties due to Britain's move to quit the
EU, tightening regulations on the industry in Europe and a rise
in administrative costs, Equilor brokerage analyst Monika Kiss
But it is helped by economic pick-up in Europe and in
Hungary, relatively low wages in Central Europe and a decline in
Crude prices were slightly lower, though off
intra-day lows on Tuesday, with the tension around Qatar raising
questions over its agreed production quota.
The stocks of Polish oil group PKN Orlen PKN.WA> and refiner
Lotos rose 2.4 percent, and 3.1 percent, respectively,
keeping Warsaw's main index in the positive despite a
fall in other shares.
Bucharest's index fell 1.1 percent, pulled down
partly by a 7.1 percent plunge in the stocks of power grid
operator Transelectrica which traded ex-dividend, has
a newly appointed management and reported disappointing
first-quarter results recently.
Poland's 10-year government bond yield dropped 2 basis
points to 3.1655 percent ahead of a meeting of the Polish
central bank on Wednesday.
The bank is likely to keep interest rates on hold until it
raises them in the third quarter of 2018, a Reuters poll found
last week, a quarter later than the previous
CEE MARKETS SNAPSH AT 1139 CET
Latest Previo Daily Change
bid close change in
Czech crown 26.319 26.342 +0.09 2.61%
0 0 %
Hungary 307.45 307.34 -0.03% 0.45%
forint 00 50
Polish zloty 4.1930 4.1923 -0.02% 5.03%
Romanian leu 4.5660 4.5668 +0.02 -0.68%
Croatian kuna 7.4140 7.3942 -0.27% 1.90%
Serbian dinar 122.30 122.16 -0.11% 0.86%
Note: daily calculated previo close 1800
change from us at CET
Latest Previo Daily Change
close change in
Prague 1006.3 1007.9 -0.15% +9.19
5 1 %
Budapest 34949. 35150. -0.57% +9.21
62 44 %
Warsaw 2283.2 2276.0 +0.32 +17.2
7 1 % 2%
Bucharest 8671.2 8769.4 -1.12% +22.3
9 1 9%
Ljubljana 793.39 792.85 +0.07 +10.5
Zagreb 1832.9 1840.0 -0.38% -8.12%
Belgrade 720.59 717.40 +0.44 +0.45
Sofia 676.79 673.80 +0.44 +15.4
Yield Yield Spread Daily
(bid) change vs change
2-year -0.114 0.071 +060b +8bps
5-year -0.127 0.072 +032b +9bps
10-year 0.716 0.012 +045b +4bps
2-year 1.896 -0.003 +261b +0bps
5-year 2.62 -0.013 +307b +0bps
10-year 3.178 -0.029 +291b +0bps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
Czech Rep <PR 0.34 0.41 0.48 0
Hungary <BU 0.2 0.25 0.3 0.15
Poland <WI 1.76 1.78 1.81 1.73
Note: FRA are for ask
($1 = 0.8892 euros)
(Additional reporting by Luiza Ilie in Bucharest/Jason Hovet in
Prague/Anna Koper and Bartosz Chmielewski in Warsaw, editing by