CEE MARKETS-Stocks mostly retreat despite Waberer’s IPO, bonds firm
* Political uncertainty fuels profit taking in CEE stockmarkets * Hungarian haulage firm Waberer's announces rare IPO * Bonds firms slightly, Polish central bank seen holdingfire By Sandor Peto BUDAPEST, June 6 Central European stocks fell onTuesday despite a rare initial public offering (IPO) announcedin Budapest, ahead of elections in Britain and France and assome Arab states severed ties with Qatar. Political uncertainty weighed on stock markets globally, andequities in the eastern states of the European Union fell inline with Western peers. Investors also used the negative sentiment for someprofit-taking.
Budapest's main index hit record highs last week andnow dances around the key 35,000-point mark, and in Bucharestwhose index is retreating from its highest levels sinceearly 2008. Budapest shed 0.6 percent by 0939 GMT even though roadtransport firm Waberer's International announced that it plannedto raise 50 million euros (£56 million) in fresh capital in ainitial public offering (IPO), and listing in Budapest. Apart from Warsaw, Central Europe's biggest bourse, IPO'sare rare in the region.
Successful IPO's were Moneta bank in Prague lastyear and cable and internet provider DIGI Communications N.V in Bucharest last month. Raiffeisen's Polish unit and debt collector GetBack considerIPOs in Warsaw. Waberer's planned listing could make it the fifth biggeststock on the Budapest Stock Exchange and fuel foreign investors'interest in the bourse, market participants said.
Waberer's is one of the biggest road haulage companies inthe EU. It will face difficulties due to Britain's move to quit theEU, tightening regulations on the industry in Europe and a risein administrative costs, Equilor brokerage analyst Monika Kisstold Reuters. But it is helped by economic pick-up in Europe and inHungary, relatively low wages in Central Europe and a decline infuel prices.
Crude prices were slightly lower, though offintra-day lows on Tuesday, with the tension around Qatar raisingquestions over its agreed production quota. The stocks of Polish oil group PKN Orlen PKN.WA> and refinerLotos rose 2.4 percent, and 3.1 percent, respectively,keeping Warsaw's main index in the positive despite afall in other shares. Bucharest's index fell 1.1 percent, pulled downpartly by a 7.1 percent plunge in the stocks of power gridoperator Transelectrica which traded ex-dividend, hasa newly appointed management and reported disappointingfirst-quarter results recently.
Poland's 10-year government bond yield dropped 2 basispoints to 3.1655 percent ahead of a meeting of the Polishcentral bank on Wednesday. The bank is likely to keep interest rates on hold until itraises them in the third quarter of 2018, a Reuters poll foundlast week, a quarter later than the previoussounding. CEE MARKETS SNAPSH AT 1139 CET OT CURRENCIES Latest Previo Daily Change us bid close change in 2017 Czech crown 26.319 26.342 +0.09 2.61% 0 0 % Hungary 307.45 307.34 -0.03% 0.45% forint 00 50 Polish zloty 4.1930 4.1923 -0.02% 5.03% Romanian leu 4.5660 4.5668 +0.02 -0.68% % Croatian kuna 7.4140 7.3942 -0.27% 1.90% Serbian dinar 122.30 122.16 -0.11% 0.86% 00 00 Note: daily calculated previo close 1800 change from us at CET STOCKS Latest Previo Daily Change us close change in 2017 Prague 1006.3 1007.9 -0.15% +9.19 5 1 % Budapest 34949.
35150. -0.57% +9.21 62 44 % Warsaw 2283.2 2276.0 +0.32 +17.2 7 1 % 2% Bucharest 8671.2 8769.4 -1.12% +22.3 9 1 9% Ljubljana 793.39 792.85 +0.07 +10.5 % 6% Zagreb 1832.9 1840.0 -0.38% -8.12% 2 0 Belgrade 720.59 717.40 +0.44 +0.45 % % Sofia 676.79 673.80 +0.44 +15.4 % 1% BONDS Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic 2-year -0.114 0.071 +060b +8bps ps 5-year -0.127 0.072 +032b +9bps ps 10-year 0.716 0.012 +045b +4bps ps Poland 2-year 1.896 -0.003 +261b +0bps ps 5-year 2.62 -0.013 +307b +0bps ps 10-year 3.178 -0.029 +291b +0bps ps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interb ank Czech Rep <PR 0.34 0.41 0.48 0 IBOR=> Hungary <BU 0.2 0.25 0.3 0.15 BOR=> Poland <WI 1.76 1.78 1.81 1.73 BOR=> Note: FRA are for ask quotes prices ********************************************************** **** (£1 = 0.8892 euros) (Additional reporting by Luiza Ilie in Bucharest/Jason Hovet inPrague/Anna Koper and Bartosz Chmielewski in Warsaw, editing byPritha Sarkar)
Next In Bonds News
BRIEF-Kaisa Group commences exchange offer for certain notes
* Commenced exchange offer with respect to existing notes held by non-U.S.
Persons outside United States
Italy – Factors to watch on June 7
The following factors could affect Italian markets on Wednesday.