CEE MARKETS-Warsaw rebounds from worst-ever hit, crown stabilises
By Jason Hovet
PRAGUE, March 13 (Reuters) - The hardest-hit Central
European stock markets recovered some losses on Friday, with
Warsaw blue-chips adding more than 5% after their worst-ever
fall in the previous session, while the Czech crown stabilised
after a sharp fall.
The crown firmed 0.4% to 26.10 to the euro after
dropping over 2% on Thursday amid market turmoil caused by
economic worries from the coronavirus outbreak. The fall was its
biggest one-day drop since the Czech central bank launched a
currency intervention regime in 2013 as part of its monetary
policy.
Markets on Friday started slightly rolling back the pricing
in of aggressive Czech rate cuts over the next year. Last month
the Czech central bank delivered its ninth rate hike since 2017,
and Governor Jiri Rusnok said this week there was not an acute
need for easing yet.
In Poland, the zloty inched up 0.1%. Hungary's
forint gained 0.3% to 338 to the euro by 0945 GMT.
The Romania leu was also a touch higher, at 4.816
per euro, amid talks about a new government that can fully
tackle the coronavirus outbreak that is spreading.
Romanian interim prime minister and Liberal Party leader
Ludovic Orban will quarantine himself after coming into contact
with one of his party's senators, who was later confirmed to
have the coronavirus, he said on Friday. Orban was meant to
attend consultations with President Klaus Iohannis later on
Friday in a new attempt to form a government.
On equity markets, Warsaw's WIG20 index led gains, rising
5.7%, gaining back about half of its loss from Thursday alone.
The index has lost 34% in the past three weeks.
Budapest rose 1.24% while Prague was up 1%.
Amid the selloff this week, Hungarian bank OTP has
acquired hundreds of thousands of its owns shares, including
200,000 on Thursday, according to bourse filings.
Analysts and markets players are expecting volatility to
continue as investors wait for policymakers to step up their
response to the virus. Global hopes of that boosted the market
on Friday.
"The (Hungarian central bank) is expected to inject
significant liquidity into the banking system at its next weekly
tender on Monday if needed, which could weaken the forint
slightly," Equilor brokerage said.
While central Europe has fewer confirmed cases of the new
virus than in western neighbours, the region's governments have
taken some of the swiftest steps to contain the spread,
including curbing or controlling international travel to their
countries, closing schools, and banning large gatherings.
CEE SNAPSHO
MARKETS T
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
EURCZK Czech <EURCZK 26.1000 26.1955 +0.37% -2.56%
= crown =>
EURHUF Hungary <EURHUF 338.000 339.015 +0.30% -2.03%
= forint => 0 0
EURPLN Polish <EURPLN 4.3600 4.3645 +0.10% -2.38%
= zloty =>
EURRON Romanian <EURRON 4.8160 4.8250 +0.19% -0.58%
= leu =>
EURHRK Croatian <EURHRK 7.5800 7.6050 +0.33% -1.78%
= kuna =>
EURRSD Serbian <EURRSD 117.610 117.665 +0.05% -0.03%
= dinar => 0 0
Note: calcula 1800
daily ted CET
change from
Latest Previou Daily Change
s
close change in 2020
.PX Prague 823.56 815.740 +0.96% -26.18%
0
.BUX Budapest 32720.0 32317.8 +1.24% -29.00%
3 9
.WIG20 Warsaw <.WIG20 1379.90 1305.73 +5.68% -35.82%
>
.BETI Buchares 7911.80 7950.02 -0.48% -20.70%
t
.SBITO Ljubljan <.SBITO 718.39 753.70 -4.68% -22.41%
P a P>
.CRBEX Zagreb <.CRBEX 1458.00 1429.47 +2.00% -27.73%
>
.BELEX Belgrade <.BELEX 724.46 726.17 -0.24% -9.63%
15 15>
.SOFIX Sofia <.SOFIX 434.83 457.61 -4.98% -23.46%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 1.6540 0.0350 +258bp +2bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 1.5770 0.1050 +241bp +5bps
RR RR> s
CZ10YT <CZ10YT 1.1040 0.0000 +174bp -10bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 1.4240 0.0560 +235bp +4bps
RR RR> s
PL5YT= 5-year <PL5YT= 1.8010 0.0590 +263bp +0bps
RR RR> s
PL10YT <PL10YT 1.8330 0.0000 +247bp -10bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 1.83 1.40 1.16 2.33
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.68 0.76 0.87 0.66
><BUBOR
=>
Poland <PLNFRA 1.38 1.13 1.02 1.69
><WIBOR
=>
Note: FRA quotes
are for ask
prices
********************************************
******************
(Reporting by Jason Hovet in Prague, Krisztina Than in Budapest
and Alan Charlish in Warsaw)
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