May 27, 2019 / 9:17 AM / 4 months ago

CEE MARKETS-FX steady, CEZ shares gain on foreign strategy shift

    BUDAPEST, May 27 (Reuters) - Central European currencies
moved sideways on Monday on a quiet day of trading untroubled by
any shocks from EU parliament elections, while shares in Czech
utility CEZ gained slightly as it announced a plan to
sell foreign assets.
    CEZ shares rose 0.4%, bucking a 0.2% decline in Prague
stocks, after CEO Daniel Benes detailed a strategy shift that
could see it sell most of its foreign assets as part of a
refocus on its home market.
    Budapest stocks led the region with a 0.7% gain in morning
trade in a session with limited activity due to a U.S. market
holiday.
    Parties committed to strengthening the European Union held
on to two-thirds of seats in the EU parliament, official
projections from the bloc's elections showed on Sunday, though
far-right and nationalist opponents saw strong gains.

    "Essentially all remains unchanged in the EU parliament,
with the caveat that the European Peoples' Party-Socialist
coalition will form a majority with the liberals in the new
parliament," analysts at brokerage Erste Investment said.
    "The far-right surge envisioned by many had failed to
materialise."
    The Hungarian forint, which has been testing new
2-year lows versus the euro in recent weeks, treaded water near
the 325 mark ahead of a Tuesday policy meeting by the National
Bank of Hungary.
    Market players expect the bank to keep its base interest
rate on hold for the rest of 2019, preferring to tackle rising
inflation by letting interbank rates rise.
    "If there is any change in the post-meeting statement (on
Tuesday) that could have a market impact, but otherwise it is
really quiet because of the dollar-holiday," a Budapest-based
currency dealer said.
    "We are stuck in the 325-327.5/328 range," the dealer said,
adding that the outcome of the European election had no market
impact.
    
           CEE      SNAPSHO   AT                      
           MARKETS  T        1048              
                             CET               
                    CURRENC                           
                    IES                        
                    Latest   Previou  Daily    Change
                             s                 
                    bid      close    change   in 2019
 Czech     <EURCZK  25.8250  25.8530   +0.11%   -0.46%
 crown     =>                                  
 Hungary   <EURHUF  325.600  325.610   +0.00%   -1.39%
 forint    =>             0        0           
 Polish    <EURPLN   4.2940   4.2902   -0.09%   -0.10%
 zloty     =>                                  
 Romanian  <EURRON   4.7615   4.7612   -0.01%   -2.26%
 leu       =>                                  
 Croatian  <EURHRK   7.4200   7.4275   +0.10%   -0.13%
 kuna      =>                                  
 Serbian   <EURRSD  117.840  117.900   +0.05%   +0.39%
 dinar     =>             0        0           
 Note:     calculated from            1800            
 daily                                CET      
 change                                        
                                                      
                    Latest   Previou  Daily    Change
                             s                 
                             close    change   in 2019
 Prague             1040.04  1041.89   -0.18%   +5.42%
                                  00           
 Budapest           40288.3  40022.6   +0.66%   +2.94%
                          1        2           
 Warsaw    <.WIG20  2193.14  2188.20   +0.23%   -3.67%
           >                                   
 Buchares           8201.41  8189.13   +0.15%   +11.07
 t                                                   %
 Ljubljan  <.SBITO   875.55   872.06   +0.40%   +8.86%
 a         P>                                  
 Zagreb    <.CRBEX  1875.65  1876.53   -0.05%   +7.25%
           >                                   
 Belgrade  <.BELEX   730.16   732.67   -0.34%   -4.14%
           15>                                 
 Sofia     <.SOFIX   572.42   573.51   -0.19%   -3.71%
           >                                   
                    BONDS                             
                    Yield    Yield    Spread   Daily
                    (bid)    change   vs Bund  change
                                               in
 Czech                                         spread
 Republic                                      
   2-year  <CZ2YT=   1.7310  -0.0580   +237bp    -5bps
           RR>                              s  
   5-year  <CZ5YT=   1.7200   0.0670   +225bp    +7bps
           RR>                              s  
           <CZ10YT   1.7820   0.0010   +191bp    +1bps
 10-year   =RR>                             s  
 Poland                                               
   2-year  <PL2YT=   1.6700  -0.0130   +231bp    -1bps
           RR>                              s  
   5-year  <PL5YT=   2.1810  -0.0190   +271bp    -1bps
           RR>                              s  
           <PL10YT   2.8310  -0.0050   +296bp    +1bps
 10-year   =RR>                             s  
           FORWARD  RATE     AGREEME                  
                             NT                
                    3x6      6x9      9x12     3M
                                               interba
                                               nk
 Czech     <CZKFRA     2.20     2.16     2.12     2.19
 Rep       ><PRIBO                             
           R=>                                 
 Hungary   <HUFFRA     0.36     0.54     0.71     0.20
           ><BUBOR                             
           =>                                  
 Poland    <PLNFRA     1.74     1.74     1.76     1.72
           ><WIBOR                             
           =>                                  
 Note:     are for ask                                
 FRA       prices                              
 quotes                                        
 

 (Reporting by Gergely Szakacs; Editing by Andrew Heavens)
  
 
 
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