* FTSE index change helps to lift Polish stocks
* Hungarian bonds rise despite FX bond issue
* Investors await Fed comments from Wednesday meeting
(Recasts on firmer Polish stocks and zloty, rise in Hungarian
bond yield)
By Sandor Peto
BUDAPEST, Sept 25 (Reuters) - Warsaw's blue-chip share index
set a three-week high on Tuesday, helped by the
reclassification of Polish shares to "developed market" from
"advanced emerging" within FTSE global indexes.
Eight Polish shares were also added this week to the STOXX
Europe 600.
Warsaw outperformed both that index and all Central European
peers, except for Prague, rising 1.1 percent by 1400 GMT.
More than half of the index gains stemmed from gains for PKO
BP, Poland's biggest lender, and PKN Orlen,
its biggest oil company. The stocks both were added to the STOXX
Europe 600 index on Monday.
The bank's Deputy CEO Jakub Papierski was quoted by Polish
news agency PAP as saying that the advance of Warsaw stocks into
FTSE's developed-market basket was "very important for PKO" but
also improves perception of Poland as a "stable, developed
country with low volatility".
The zloty currency firmed by 0.2 percent against
the euro while Hungary's forint, which usually moves
in tandem with the Polish currency, eased by 0.3 percent in thin
trade, hitting a one-week low against the zloty.
Hungary's 10-year government bond yield rose 2 basis points
to 3.6 percent, in line with its Polish peer, which was bid at
3.284 percent.
They tracked a rise in the corresponding 10-year U.S.
Treasury yield above 3.1 percent and a rise in Bund yields after
European Central Bank chief Mario Draghi predicted a vigorous
pick-up in euro zone inflation.
One Budapest-based bond trader said the yield rise also
reflected some expectations that the Federal Reserve might
predict steeper-than-expected future interest rate increases at
its meeting on Wednesday.
Hungarian government bonds have received some support this
week from a rare foreign currency bond issue by the government.
It launched a sale of a seven-year euro-denominated
benchmark bond on Tuesday, with demand exceeding 2 billion euros
($2.36 billion), the IFR financial news service said.
The positive impact faded on Tuesday because of uncertainty
over European Union fund inflows, the trader said.
Hungary may lose European Union funds worth up to $1.8
billion because of a dispute with the European Commission, news
website G7.hu said on Tuesday, citing a government
report.
CEE SNAPSHOT AT
MARKETS 1600 CET
CURRENCI
ES
Latest Previous Daily Change
bid close change in 2018
Czech <EURCZK= 25.6290 25.6180 -0.04% -0.34%
crown >
Hungary <EURHUF= 324.5300 323.6000 -0.29% -4.20%
forint >
Polish <EURPLN= 4.2924 4.2991 +0.16% -2.70%
zloty >
Romanian <EURRON= 4.6620 4.6580 -0.09% +0.38%
leu >
Croatian <EURHRK= 7.4290 7.4255 -0.05% +0.02%
kuna >
Serbian <EURRSD= 118.3500 118.2400 -0.09% +0.13%
dinar >
Note: calculated from 1800 CET
daily
change
Latest Previous Daily Change
close change in 2018
Prague 1105.58 1093.460 +1.11% +2.54%
0
Budapest 35833.24 35786.54 +0.13% -9.00%
Warsaw 2304.80 2280.60 +1.06% -6.36%
Bucharest 8337.88 8377.37 -0.47% +7.53%
Ljubljana <.SBITOP 848.08 857.27 -1.07% +5.17%
>
Zagreb 1797.04 1810.29 -0.73% -2.49%
Belgrade <.BELEX1 727.75 730.56 -0.38% -4.22%
5>
Sofia 624.83 623.48 +0.22% -7.77%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 1.5650 0.0980 +209bps +10bps
R>
5-year <CZ5YT=R 1.9270 0.0570 +202bps +4bps
R>
10-year <CZ10YT= 2.2310 0.0120 +170bps -1bps
RR>
Poland
2-year <PL2YT=R 1.5700 -0.0130 +209bps -1bps
R>
5-year <PL5YT=R 2.5700 0.0140 +266bps +0bps
R>
10-year <PL10YT= 3.2840 0.0180 +275bps +0bps
RR>
FORWARD RATE AGREEMEN
T
3x6 6x9 9x12 3M
interban
k
Czech Rep 1.95 2.14 2.26 1.57
<PRIBOR=
>
Hungary 0.41 0.65 0.92 0.19
Poland 1.77 1.82 1.87 1.72
Note: FRA are for ask prices
quotes
*************************************************
*************
($1 = 0.8488 euros)
(Reporting by Sandor Peto
Editing by Alison Williams and David Goodman)
