Daily Stock Market Reports

CEE MARKETS-Stocks, currencies ease as global mood sours; forint wobbly

By Krisztina Than BUDAPEST, May 19 (Reuters) – Central European currencies and stocks dropped on Thursday as risk sentiment in global markets soured with investors fretting over the inflation storm, economic growth outlook and the Russia-Ukraine conflict. The Hungarian forint was on a rollercoaster, weakening again to 385 versus the euro, after it posted gains the day before on comments by Deputy Governor Barnabas Virag that Hungary needed positive real interest rates to wrestle down inflation. “The forint extended gains but was stopped by an important resistance level … and could not close the day firmer than 382.50 to the euro,” brokerage Equilor said in a note. “This is the level worth watching in coming days … if the forint does not manage to firm past this level then it could start weakening again.” At 0727 GMT, the forint was down 0.4% trading at 385 versus the euro, leading losses in the region. As expected, the Hungarian central bank kept its one-week deposit rate unchanged at 6.45% at a weekly tender on Thursday. The bank uses the one-week deposit rate to tackle short-term market volatility. Late last month, the bank raised its base rate by 100 basis points to 5.4%, as it fights surging inflation, along with its peers across Central Europe. The Czech crown was 0.1% lower at 24.692 against the euro. The central bank stepped into markets last week to intervene to stop a sharp decline as the country’s interest rate outlook faces uncertainty. Markets expect a hefty rate hike when the Czech bank meets again in June, sitting under the current board composition for the last time before a new governor, who, however, has called for an end to the sharp policy tightening seen over the past year. Poland and Romania launched debt sales on Wednesday, restarting emerging market sovereign debt issuance on international markets after a month’s hiatus. In Poland, the zloty was 0.1% weaker at 4.646 to the euro. Stock markets dropped along with global peers, with Budapest down 2% leading losses. CEZ shares pulled back on Thursday, falling over 1%, after rising 8% in the previous session on speculation of possible restructuring at the Czech majority state-owned utility. The Czech Finance Ministry said on Wednesday a restructuring was one option being analysed for CEZ, dusting off an idea that a previous government shelved in 2018-19. “Even though no detailed information was given, the fact that such possibility is being considered should support the stock price in the following days,” J&T Banka said in a note. CEE SNAPSHOT AT MARKETS 0923 CET CURRENCI ES Latest Previous Daily Change bid close change in 2022 EURCZK Czech 24.6920 24.6600 -0.13% +0.73% = crown EURHUF Hungary 385.0000 383.5000 -0.39% -4.05% = forint EURPLN Polish 4.6460 4.6405 -0.12% -1.18% = zloty EURRON Romanian n/a 4.9480 n/a n/a = leu EURHRK Croatian 7.5350 7.5345 -0.01% -0.23% = kuna EURRSD Serbian 117.4100 117.4800 +0.06% +0.14% = dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2022 .PX Prague 1331.76 1339.070 -0.55% #VALUE! 0 .BUX Budapest 42012.89 42896.59 -2.06% -17.17% .WIG20 Warsaw 1770.86 1801.68 -1.71% -21.88% .BETI Buchares 11961.23 12093.12 -1.09% -8.42% t .SBITO Ljubljan 1130.59 1135.97 -0.47% -9.95% P a .CRBEX Zagreb 2080.30 2080.30 +0.00% +0.05% .BELEX Belgrade <.BELEX15 820.02 820.02 +0.00% -0.09% 15 > .SOFIX Sofia 616.05 616.05 +0.00% -3.09% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year s CZ5YT= 5-year s CZ10YT s Poland PL2YT= 2-year s PL5YT= 5-year s PL10YT s FORWARD 3×6 6×9 9×12 3M interba nk Czech < 6.84 6.78 6.46 6.04 Rep PRIBOR=> Hungary < 7.91 8.35 8.34 6.81 BUBOR=> Poland < 7.18 7.27 7.24 6.45 WIBOR=> Note: are for ask prices FRA quotes ************************************************ ************** (Additional reporting by Jason Hovet in Prague; Editing by Sherry Jacob-Phillips)

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