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CEE MARKETS-Stocks mostly retreat despite Waberer's IPO, bonds firm
June 6, 2017 / 10:57 AM / 6 months ago

CEE MARKETS-Stocks mostly retreat despite Waberer's IPO, bonds firm

    * Political uncertainty fuels profit taking in CEE stock
markets
    * Hungarian haulage firm Waberer's announces rare IPO
    * Bonds firms slightly, Polish central bank seen holding
fire

    By Sandor Peto
    BUDAPEST, June 6 (Reuters) - 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
profit-taking.
    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
early 2008.
    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
the EU.
    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
told Reuters.
    But it is helped by economic pick-up in Europe and in
Hungary, relatively low wages in Central Europe and a decline in
fuel prices.
    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
sounding.
    
                CEE MARKETS  SNAPSH   AT  1139 CET         
                             OT                      
                             CURRENCIES                    
                             Latest  Previo  Daily   Change
                                     us              
                             bid     close   change  in
                                                     2017
 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%
                                 00      00          
 Note: daily    calculated   previo  close   1800          
 change         from         us      at      CET     
                             STOCKS                        
                             Latest  Previo  Daily   Change
                                     us              
                                     close   change  in
                                                     2017
 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
                                                  %      6%
 Zagreb                      1832.9  1840.0  -0.38%  -8.12%
                                  2       0          
 Belgrade                    720.59  717.40   +0.44   +0.45
                                                  %       %
 Sofia                       676.79  673.80   +0.44   +15.4
                                                  %      1%
                             BONDS                         
                             Yield   Yield   Spread  Daily
                             (bid)   change  vs      change
                                             Bund    in
 Czech                                               spread
 Republic                                            
   2-year                    -0.114   0.071   +060b   +8bps
                                                 ps  
   5-year                    -0.127   0.072   +032b   +9bps
                                                 ps  
   10-year                    0.716   0.012   +045b   +4bps
                                                 ps  
 Poland                                                    
   2-year                     1.896  -0.003   +261b   +0bps
                                                 ps  
   5-year                      2.62  -0.013   +307b   +0bps
                                                 ps  
   10-year                    3.178  -0.029   +291b   +0bps
                                                 ps  
                FORWARD      RATE    AGREEMENT             
                             3x6     6x9     9x12    3M
                                                     interb
                                                     ank
 Czech Rep              <PR    0.34    0.41    0.48       0
                IBOR=>                               
 Hungary                <BU     0.2    0.25     0.3    0.15
                BOR=>                                
 Poland                 <WI    1.76    1.78    1.81    1.73
                BOR=>                                
 Note: FRA      are for ask                                
 quotes         prices                               
 **********************************************************
 ****
 

($1 = 0.8892 euros)

 (Additional reporting by Luiza Ilie in Bucharest/Jason Hovet in
Prague/Anna Koper and Bartosz Chmielewski in Warsaw, editing by
Pritha Sarkar)
  
 
 

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