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CEE MARKETS-Polish stocks hit multi-year high, Eurocash woes slow rally
August 25, 2017 / 10:10 AM / 3 months ago

CEE MARKETS-Polish stocks hit multi-year high, Eurocash woes slow rally

    * Warsaw's bluechip stock index highest since May 2015
    * Eurocash hit from tax fraud slows Polish stocks rally
    * Forint reverses fall after central bank talks it down

    By Sandor Peto
    BUDAPEST, Aug 25 (Reuters) - Polish stocks hit multi-year
highs on Friday even though the rally was slowed by wholesale
group Eurocash's announcement it had been hit by tax fraud.
    Warsaw is Central Europe's best performing stock exchange
this year. Its bluechip index has gained more than 26
percent since 2016.
    Polish shares are picking up after underperforming regional
peers last year when the policies of the conservative Law and
Justice Party (PiS), which took power in late 2015, hit various
sectors including banks.
    Its policies have become less painful to businesses, even
though Polish assets repeatedly came under pressure this year
from politics, including tension with Brussels over judiciary
reform and a plan to help FX borrowers at the cost of banks.
    Central Europe's robust economic performance still buoys its
currencies and equities. 
    Polish consumer confidence hit an all-time high in August
according to late Thursday's data. 
    The healthy outlook has opened the way for more gains on the
Polish bourse after the past few weeks' global worries over
tension between North Korea and the United States eased,
analysts said.
    After a rally on Thursday, Warsaw's bluechip index
hit its highest level since May 2015 on Friday. The
index which also takes dividends into account set a 10-year
high.
    The .WIG20 stood higher by 0.2 percent at 0912 GMT at 2,461
points, driven off the day's peaks by a retreat of some bank
stocks and a 4 percent plunge of Eurocash
.
    The wholesale group's shares tumbled after it said that it
had been cheated in a VAT fraud and might be obliged to refund
tax to the state, reducing its profit by 114 million zlotys
($31.57 million).
    Hungarian stocks were treading water, after Budapest's main
equities index hit a record high on Thursday.
    The forint was steady at 304.29 against the
euro, off Thursday's two-week lows at 304.82, and Hungarian
government bond yields rose 1-2 basis points after 10 basis
point fall on Thursday.
    The forint plunged one percent on Thursday from 28-month
highs of 301.72 after the Hungarian central bank flagged further
monetary easing on comments to Reuters, which market
participants said was verbal intervention to stem the gains of
the forint.
    Dealers said the forint may resume it firming trend.
    "Has anything changed fundamentally?," one Budapest-based
dealer said.
    "With the current domestic macroeconomic and international
backdrop, a firming is natural... Possible exotic options
barriers near the 300 level also keep people excited."
    
               CEE MARKETS  SNAPSH   AT  1112 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2017
 Czech crown                26.098  26.106   +0.03   3.48%
                                 0       5       %  
 Hungary                    304.29  304.42   +0.04   1.49%
 forint                         00      50       %  
 Polish zloty               4.2614  4.2622   +0.02   3.34%
                                                 %  
 Romanian leu               4.5890  4.5836  -0.12%  -1.18%
 Croatian                   7.3950  7.4135   +0.25   2.16%
 kuna                                            %  
 Serbian                    119.13  119.26   +0.11   3.54%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2017
 Prague                     1035.3  1034.1   +0.11   +12.3
                                 0       5       %      4%
 Budapest                   37996.  37954.   +0.11   +18.7
                                01      41       %      3%
 Warsaw                     2460.8  2456.2   +0.19   +26.3
                                 4       7       %      3%
 Bucharest                  8373.0  8348.7   +0.29   +18.1
                                 8       6       %      8%
 Ljubljana                  829.14  828.68   +0.06   +15.5
                                                 %      5%
 Zagreb                     1902.5  1903.4  -0.05%  -4.63%
                                 1       7          
 Belgrade                   722.11  722.78  -0.09%   +0.66
                                                         %
 Sofia                      717.18  718.44  -0.18%   +22.3
                                                        0%
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                   -0.021   0.005   +070b   -1bps
                                                ps  
   5-year                    0.087   0.047   +039b   +3bps
                                                ps  
   10-year                   0.902  -0.031   +050b   -5bps
                                                ps  
 Poland                                                   
   2-year                     1.74  -0.007   +247b   -2bps
                                                ps  
   5-year                     2.64   0.013   +294b   +0bps
                                                ps  
   10-year                   3.316   0.015   +292b   -1bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR     0.6    0.71    0.81       0
               IBOR=>                               
 Hungary               <BU    0.19    0.25    0.31    0.15
               BOR=>                                
 Poland                <WI   1.764    1.79    1.84    1.73
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 
 (Additional reporting from Warsaw editorial Editing by Jeremy
Gaunt.)
  
 
 

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