CEE MARKETS-Zloty holds ground on possible progress in receiving EU funds
22/01/2024 10:45
By Boldizsar Gyori
BUDAPEST, Jan 22 (Reuters) - Hungary's forint traded
sideways on Monday as investors digested the prospect of reforms
to corporal lending rates, with the zloty stabilising as
headlines showed political tensions to calm and progress in
relation to receiving EU funds.
Hungary's forint EURHUF= held flat after easing five
consecutive sessions last week, trading at 382.15 to the euro at
1009 GMT.
"I don't think the forint will move too much away from the
level of 380 until the central bank makes clear how much they
plan to cut," a Budapest-based trader said.
Hungary's central bank is considering a possible
acceleration in the pace of rate cuts to 100 basis points from
75 bps at its upcoming policy meeting on Jan. 30, Deputy
Governor Barnabas Virag said last week.
Bond yields eased by 1-2 bps as traders digested a
government proposal to reform corporate lending rates by
applying treasury bill yields as the benchmark lending rates,
instead of Budapest interbank rates, to curb borrowing costs.
Magyar Telekom MTEL.BU shares hit their highest level
since early 2010, gaining 2.88% and more than 34% over the past
three months, outperforming the blue chip .BUX index, which
rose some 15% over the same period.
Telecommunication companies will hike their fees by 15% on
average in 2024 based on corporate announcements and local media
reports, adjusting their prices to last year's inflation.
"Indexation of telecom service prices could add 0.2-0.4% to
headline inflation in March," UniCredit said in a note.
Poland's zloty EURPLN= continued to hold its ground from
Friday's session when the currency recovered its losses on
reports that Poland had met the final conditions needed to
access 76 billion euros ($83 billion) in funds from the European
Union's 2021-2027 budget.
"It is possible that this was related to ... negotiations on
how to unlock subsequent tranches of EU funds," Bank Millennium
said in a note.
"He (the EU's Commissioner for Justice) expressed the hope
that he would soon be able to approve the first tranche of funds
for Poland."
The Czech crown (EURCZK=) traded at 24.74.
CEE SNAPSHO AT
MARKETS T 1109
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2024
EURCZK= Czech
EURHUF= Hungary 0 0
EURPLN= Polish
EURRON= Romanian
EURRSD= Serbian 0 0
Note: calculat 1800
daily ed from CET
change
Latest Previou Daily Change
s
close change in 2024
.PX Prague .PX 1448.37 1442.17 +0.43% +2.43%
00
.BUX Budapest .BUX 64908.1 64580.8 +0.51% +7.07%
8 7
.WIG20 Warsaw .WIG20 2205.73 2200.91 +0.22% -5.86%
.BETI Buchares .BETI 15668.0 15617.6 +0.32% +1.93%
t 0 4
Spread Daily
vs Bund change
in
Czech spread
Republic
CZ2YT=R 2-year s
CZ5YT=R 5-year s
CZ10YT= s
Poland
PL2YT=R 2-year s
PL5YT=R 5-year s
PL10YT= s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech CZKFRA 5.71 4.64 3.75 6.60
Rep
Hungary HUFFRA 7.18 5.71 5.19 9.53
BUBOR=
Poland PLNFRA 5.66 5.28 4.90 5.86
WIBOR=
Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Alan Charlish in Warsaw and Anita Komuves in
Budapest; Editing by Tasim Zahid and Ed Osmond)
((alan.charlish@thomsonreuters.com;))
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