September 27, 2019 / 10:26 AM / 22 days ago

CEE MARKETS-Romanian stocks rise after FTSE Russell upgrade, regional currencies ease

    By Radu-Sorin Marinas
    BUCHAREST, Sept 27 (Reuters) - Central European stock
markets rose on Friday with Bucharest hitting an 11-year high
after FTSE Russell announced it would assign Romanian equities
"secondary emerging" market status from September 2020. 
    Romania's blue chip index rose about 1.0% to
9,659.39, its highest since January 2008, helped by the upgrade
from its current "frontier" status. By 0930 GMT, Prague
and Warsaw were each up 0.5% on the day, with Budapest
 rising 0.7%. 
    "Romania's capital markets is joining a more select club of
bourses, equivalent to investment grade ... and from now it has
a chance to contribute more to boost (the) capitalisation of our
economy," Finance Minister Eugen Teodorovici said.
    The Bucharest Stock Exchange has 84 companies on its main
market, with a combined capitalization of 36 billion euros ($39
billion), just a fraction of Warsaw's 250 billion euros where
351 firms are listed. 
    Regional currencies weakened, mirroring the euro's falls,
with Hungary's forint leading losses to hit a fresh record low.
    The single currency held at its lowest level in more than
two years.
    The forint, which has lost about 4.5% versus the
euro since the start of the year, dropped to as low as 336.28,
and bounced back marginally to trade 0.2% weaker on the day, at
335.89 to the euro at 0901 GMT.
    "Tuesday's bounce following the central bank rate meeting
proved to be short-lived," said a trader in Budapest. "The
dollar is strengthening, Hungarian interest rates are low."
    A weak European economy and uncertainty about the terms of
Brexit together with labour shortages in central Europe and the
prospect of a slowing economy - all weigh in, the trader added.
    The Hungarian central bank had projected lower inflation and
an economic slowdown and shifted to a more dovish stance on
Tuesday, when it left interest rates at the lowest in Central
Europe.
            CEE       SNAPSHOT     AT                         
            MARKETS               1150 CET          
                      CURRENCIES                              
                      Latest      Previous  Daily   Change
                      bid         close     change  in 2019
 Czech      <EURCZK=     25.8580   25.8300  -0.11%      -0.58%
 crown      >                                       
 Hungary    <EURHUF=    336.0700  335.2500  -0.24%      -4.46%
 forint     >                                       
 Polish     <EURPLN=      4.3888    4.3850  -0.09%      -2.26%
 zloty      >                                       
 Romanian   <EURRON=      4.7500    4.7461  -0.08%      -2.02%
 leu        >                                       
 Croatian   <EURHRK=      7.4095    7.4070  -0.03%      +0.01%
 kuna       >                                       
 Serbian    <EURRSD=    117.3900  117.4400   +0.04      +0.78%
 dinar      >                                    %  
 Note:      calculated from                 1800              
 daily                                      CET     
 change                                             
                                                              
                      Latest      Previous  Daily   Change
                                  close     change  in 2019
 Prague                  1043.51  1037.100   +0.62      +5.77%
                                         0       %  
 Budapest               40789.56  40534.28   +0.63      +4.22%
                                                 %  
 Warsaw                  2183.94   2172.47   +0.53      -4.07%
                                                 %  
 Bucharest               9627.50   9528.24   +1.04     +30.39%
                                                 %  
 Ljubljana  <.SBITOP      858.82    856.41   +0.28      +6.78%
            >                                    %  
 Zagreb                  1981.14   1959.70   +1.09     +13.29%
                                                 %  
 Belgrade   <.BELEX1      753.79    758.44  -0.61%      -1.04%
            5>                                      
 Sofia                    569.72    573.68  -0.69%      -4.16%
                      BONDS                                   
                      Yield       Yield     Spread  Daily
                      (bid)       change    vs      change in
                                            Bund    
 Czech                                              spread
 Republic                                           
   2-year   <CZ2YT=R      1.2990   -0.0430   +204b       -4bps
            R>                                  ps  
   5-year   <CZ5YT=R      1.0850   -0.0850   +187b       -9bps
            R>                                  ps  
   10-year  <CZ10YT=      1.3310    0.0050   +191b       +1bps
            RR>                                 ps  
 Poland                                                       
   2-year   <PL2YT=R      1.4810   -0.0190   +222b       -1bps
            R>                                  ps  
   5-year   <PL5YT=R      1.7830   -0.0110   +257b       -1bps
            R>                                  ps  
   10-year  <PL10YT=      2.0050   -0.0030   +259b       +0bps
            RR>                                 ps  
            FORWARD   RATE        AGREEMEN                    
                                  T                 
                      3x6         6x9       9x12    3M
                                                    interbank
 Czech Rep                  2.16      2.09    2.11        2.15
            <PRIBOR=                                
            >                                       
 Hungary                    0.27      0.30    0.34        0.21
                                                    
 Poland                     1.73      1.69    1.65        1.72
                                                    
 Note: FRA  are for ask prices                                
 quotes                                             
 *************************************************            
 *************                                      
 
       


($1 = 0.9156 euros)

 (Additional reporting by gergely Szakacs in Budapest and Alan
Charlish in Warsaw; Editing by Susan Fenton)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below