* Warsaw banks stocks fall further after initial rebound
* Shares in troubled Getin Bank hit record low
* Polish regulator committee says bank system is safe
* KNF scandal, Brexit continue to weigh on zloty
By Sandor Peto
BUDAPEST, Nov 19 (Reuters) - Warsaw shares extended declines
on Monday, led lower by banks, as regulators tried to assure
investors that a bribe scandal linked to a troubled bank would
not upset the financial system.
The Polish banking shares index, after an initial
rebound from Friday's 19-month low, was down 0.75 percent by
1032 GMT. Warsaw's broader stock index was down 0.2
percent.
The index has plunged about 10 percent since last Tuesday,
when the head of the financial markets regulator KNF, Marek
Chrzanowski, stepped down.
He resigned after the owner of Getin Noble Bank,
Leszek Czarnecki, accused him of trying to extract a
multi-million dollar bribe from him. Chrzanowski denies the
accusations.
On Friday Polish central bank governor Adam Glapinski, who
proposed Chrzanowski for the KNF job, denied speculation that he
would also resign.
Later, the head of Poland's ruling Law and Justice party,
Jaroslaw Kaczynski, was quoted by the tabloid Fakt as saying
that Prime Minister Mateusz Morawiecki would not have to quit
over the scandal.
The influential Financial Stability Committee said on Monday
that Poland's financial system was stable, but it was ready to
take action if needed.
But the bank shares index extended its losses. Among them,
loss-making Getin, Poland's ninth biggest lender by assets, lost
a further 12 percent to hit a record low.
The zloty extended Friday's losses, shedding 0.2
percent against the euro, to trade at 4.323.
The scandal has weighed on the currency, along with worries
that Britain's looming exit from the European Union could hurt
Polish trade, analysts said.
"While the EURPLN does not look greatly mis-priced
currently, we cannot rule out further bouts of volatility until
the scandal settles," Erste analysts said in a note.
According to data released on Monday, Poland's corporate
sector wages rose by 7.6 percent in annual terms in October,
above an analysts' forecast of 6.7 percent.
The labour market remains tight and wage growth might even
accelerate, Santander bank economists said in a note.
The Polish central bank, however, is not expected to start
to increase its record-low interest rates any time soon, with
inflation still below the mid-point of its 1.5-3.5 percent
target.
The zloty's weakness weighed on the forint, which eased by
0.1 percent, dealers said, even though some market participants,
like analysts in a Raiffeisen note, expect Moody's to upgrade
its sovereign rating for Hungary on Friday.
The Hungarian central bank is expected to keep rates on hold
at a planned meeting on Tuesday.
"I do not expect hawkish comments either. The forint moved
in tight ranges, and that is perfect for them," one dealer said.
CEE SNAPSHOT AT
MARKETS 1132 CET
CURRENCI
ES
Latest Previous Daily Change
bid close change in 2018
Czech <EURCZK= 26.0000 26.0040 +0.02% -1.76%
crown >
Hungary <EURHUF= 321.7700 321.5000 -0.08% -3.37%
forint >
Polish <EURPLN= 4.3230 4.3141 -0.21% -3.39%
zloty >
Romanian <EURRON= 4.6658 4.6675 +0.04% +0.30%
leu >
Croatian <EURHRK= 7.4260 7.4285 +0.03% +0.06%
kuna >
Serbian <EURRSD= 118.2000 118.2500 +0.04% +0.25%
dinar >
Note: calculated from 1800 CET
daily
change
Latest Previous Daily Change
close change in 2018
Prague 1080.92 1080.530 +0.04% +0.26%
0
Budapest 39260.84 39328.39 -0.17% -0.30%
Warsaw 2155.35 2165.46 -0.47% -12.43%
Bucharest 8554.30 8574.88 -0.24% +10.32%
Ljubljana <.SBITOP 819.22 817.42 +0.22% +1.59%
>
Zagreb 1748.90 1756.44 -0.43% -5.10%
Belgrade <.BELEX1 745.36 745.70 -0.05% -1.90%
5>
Sofia 594.55 595.31 -0.13% -12.24%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 1.5930 0.1330 +224bps +13bps
R>
5-year <CZ5YT=R 1.8470 0.0050 +206bps +0bps
R>
10-year <CZ10YT= 2.1220 0.0470 +174bps +4bps
RR>
Poland
2-year <PL2YT=R 1.6030 -0.0320 +225bps -4bps
R>
5-year <PL5YT=R 2.4960 -0.0160 +271bps -3bps
R>
10-year <PL10YT= 3.2750 -0.0080 +289bps -2bps
RR>
FORWARD RATE AGREEMEN
T
3x6 6x9 9x12 3M
interban
k
Czech Rep 2.22 2.36 2.46 2.00
<PRIBOR=
>
Hungary 0.31 0.61 0.97 0.13
Poland 1.77 1.81 1.87 1.72
Note: FRA are for ask prices
quotes
