* CEE assets rangebound ahead of Fed meeting, Polish holiday
* JP Morgan lifts OTP target price, Budapest stocks at
* Investors continue to shrug off domestic politics
* Czech central bank urges powers to tame home loan frenzy
By Sandor Peto
BUDAPEST, June 13 Budapest's main stock index
rose to a record high on Tuesday, boosted by a rise of
OTP Bank shares after JP Morgan lifted its target
price for the stock.
OTP firmed by over 1.5 percent to a four-month high of 9,095
forints ($33.22), after JP Morgan changed its target to 12,000
forints from 9,860 forints.
"The last time we saw similar value (from JP Morgan) was in
2007," Erste analysts said in a note.
Central European markets were generally idle as investors
awaited key signals about global interest rate trends from the
Federal Reserve's meeting on Wednesday.
The week will be also short for many investors in Poland,
the region's biggest economy, which will have a national holiday
"The tone of the Fed's comments will be key... while it is
summer and that also keeps a lid on activity," said Zoltan
Varga, analyst of Equilor brokerage.
Regional currencies were mixed, with the zloty and
the forint firming 0.1 percent against the euro,
staying well within the past few weeks' narrow ranges.
The leu eased a shade.
Investors were not worried over inflation after a jump in
Hungary's annual farm producer price index to 4.1 percent in
April from 1.4 percent in March and continuing double-digit
annual rise in Romanian net wages in April.
Romanian data published on Monday showed that annual
inflation remained low at 0.6t percent in May, while concerns
remain that it could jump, along with the budget deficit, by
next year, keeping the leu under pressure.
While European politics lacked new developments, investors
also shrugged off domestic politics. Local political tension
usually affects asset prices only when international markets are
The European Commission is expected to launch legal cases
against the Czechs, Hungary and Poland later on Tuesday for
failing to take in asylum-seekers in a quota scheme.
In Croatia, foreign minister Davor Ivo Stier resigned on
Monday, following the formation of a new coalition including the
conservatives and the liberals. The dinar traded
mildly firmer against the euro on Tuesday.
The Czech central bank said it was doubling the amount
banks must put aside as a precaution for hard times as of July
next year because of rapid credit growth.
Its governor, Jiri Rusnok also pushed lawmakers to give the
bank more powers to tame the growing home loan market.
Bank stocks listed in Prague were mixed. The crown
was steady against the euro, off last Friday's the
CEE MARKETS SNAPSH AT 1042 CET
Latest Previo Daily Change
bid close change in
Czech crown 26.210 26.203 -0.02% 3.04%
Hungary 307.15 307.53 +0.12 0.54%
forint 00 00 %
Polish zloty 4.1925 4.1964 +0.09 5.04%
Romanian leu 4.5644 4.5623 -0.05% -0.64%
Croatian kuna 7.4050 7.4095 +0.06 2.03%
Serbian dinar 122.27 122.40 +0.11 0.88%
00 00 %
Note: daily calculated previo close 1800
change from us at CET
Latest Previo Daily Change
close change in
Prague 1003.7 1004.4 -0.07% +8.91
6 6 %
Budapest 35425. 35334. +0.26 +10.6
59 48 % 9%
Warsaw 2290.3 2295.0 -0.20% +17.5
4 1 8%
Bucharest 8446.3 8451.2 -0.06% +19.2
5 0 1%
Ljubljana 790.94 797.45 -0.82% +10.2
Zagreb 1847.3 1841.1 +0.34 -7.40%
1 0 %
Belgrade 715.82 723.54 -1.07% -0.22%
Sofia 682.59 681.39 +0.18 +16.4
Yield Yield Spread Daily
(bid) change vs change
2-year -0.086 0.024 +063b +2bps
5-year -0.051 0.052 +038b +4bps
10-year 0.818 0.011 +055b +0bps
2-year 1.885 0 +260b -1bps
5-year 2.59 0 +303b -1bps
10-year 3.162 0.039 +289b +3bps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
Czech Rep <PR 0.35 0.43 0.52 0
Hungary <BU 0.19 0.23 0.29 0.15
Poland <WI 1.754 1.769 1.796 1.73
Note: FRA are for ask
($1 = 273.7800 forints)
(Reporting by Sandor Peto, editing by Louise Heavens)