February 22, 2019 / 12:00 PM / 4 months ago

CEE MARKETS-Stocks gain, but Hungary lags after Telekom, MOL results

    * CEE stocks mostly track global rise, led by Warsaw
    * Magyar Telekom, MOL cash flow outlook disappoint

    By Sandor Peto
    BUDAPEST, Feb 22 (Reuters) - Central European stocks mostly
rose on Friday, with Hungarian shares lagging behind after
disappointing earnings reports.
    Regional equities generally tracked Asia and Western Europe,
where markets gained on optimism over U.S.-China trade talks,
although company results in Europe were mixed.
    Warsaw outperformed, with its blue-chip index
rising 1.1 percent by 1043 GMT, driven mainly by the rebound of
oil company PKN Orlen.
    Budapest's main index was flat. Magyar Telekom
 shares shed almost one percent, extending a decline
since reporting fourth-quarter earnings on Wednesday.
    Oil group MOL struggled to break through
resistance levels at 3,300 forints ($11.78) despite a surprise
rise in fourth-quarter earnings.
    Equilor brokerage analyst Zsolt Bosnyak said an expected
decline in both MOL and Magyar Telekom's free cash flow may be
behind the relatively weak performance of the shares.
    "There may be some disappointment over MOL's EBITDA
guidance, while downstream investments will cut their free cash
flow," he said.
    Magyar Telekom forecasts 5 percent annual growth in its free
cash flow, but investment in 5G technology may cut into its cash
and the company will face growing competition, Bosnyak said.
    OTP Bank was unable to push through three-week
highs, but it get a boost when it reports earnings next week,
Equilor analyst Lajos Torok said. 
   Central European currency and government bonds mostly were
little changed. The Czech crown, the forint
and the leu all lost less than 0.1 percent versus the
euro.
    The zloty gained and the dinar rose to 118.12
against the euro, after Serbia's annual inflation rose to 2.1
percent in January from 2 percent in December. 
    The kuna slipped to 7.417 versus the euro.
Croatia's inflation fell to an annual 0.2 percent from 0.8
percent in January.
    
    
            CEE       SNAPSHOT   AT                         
            MARKETS             1143 CET            
                      CURRENCI                              
                      ES                            
                      Latest    Previous  Daily     Change
                      bid       close     change    in 2019
 Czech      <EURCZK=   25.6500   25.6350    -0.06%    +0.22%
 crown      >                                       
 Hungary    <EURHUF=  317.9000  317.7100    -0.06%    +1.00%
 forint     >                                       
 Polish     <EURPLN=    4.3375    4.3390    +0.03%    -1.10%
 zloty      >                                       
 Romanian   <EURRON=    4.7630    4.7616    -0.03%    -2.29%
 leu        >                                       
 Croatian   <EURHRK=    7.4170    7.4155    -0.02%    -0.09%
 kuna       >                                       
 Serbian    <EURRSD=  118.1200  118.1600    +0.03%    +0.15%
 dinar      >                                       
 Note:      calculated from               1800 CET          
 daily                                              
 change                                             
                                                            
                      Latest    Previous  Daily     Change
                                close     change    in 2019
 Prague                1060.54  1058.890    +0.16%    +7.50%
                                       0            
 Budapest             40721.99  40721.48    +0.00%    +4.04%
 Warsaw                2365.17   2339.85    +1.08%    +3.89%
 Bucharest             7847.00   7856.01    -0.11%    +6.27%
 Ljubljana  <.SBITOP    851.71    849.21    +0.29%    +5.90%
            >                                       
 Zagreb                1771.23   1772.63    -0.08%    +1.28%
 Belgrade   <.BELEX1    684.88    680.63    +0.62%   -10.08%
            5>                                      
 Sofia                  575.82    577.94    -0.37%    -3.14%
                      BONDS                                 
                      Yield     Yield     Spread    Daily
                      (bid)     change    vs Bund   change
                                                    in
 Czech                                              spread
 Republic                                           
   2-year   <CZ2YT=R    1.9520    0.1580   +251bps    +16bps
            R>                                      
   5-year   <CZ5YT=R    1.8270    0.0340   +219bps     +4bps
            R>                                      
   10-year  <CZ10YT=    1.8850    0.0060   +177bps     +2bps
            RR>                                     
 Poland                                                     
   2-year   <PL2YT=R    1.5750    0.0130   +213bps     +1bps
            R>                                      
   5-year   <PL5YT=R    2.1660    0.0120   +253bps     +2bps
            R>                                      
   10-year  <PL10YT=    2.7710    0.0100   +266bps     +2bps
            RR>                                     
            FORWARD   RATE      AGREEMEN                    
                                T                   
                      3x6       6x9       9x12      3M
                                                    interban
                                                    k
 Czech Rep                2.24      2.28      2.29      2.02
            <PRIBOR=                                
            >                                       
 Hungary                  0.34      0.54      0.74      0.15
                                                    
 Poland                   1.72      1.72      1.70      1.72
                                                    
 Note: FRA  are for ask prices                              
 quotes                                             
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 *************                                      
 

($1 = 280.1600 forints)

 (Additional reporting by Alicja Ptak in Warsaw, editing by
Larry King)
  
 
 
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