By Boldizsar Gyori
BUDAPEST, July 12 (Reuters) - Romanian hydro power
producer Hidroelectrica's shares soared in their market debut on
Wednesday following Europe's largest initial public offering so
far this year, while central European stocks enjoyed a boost
from investors' improved risk appetite.
In currency markets, the Hungarian forint inched back toward
levels seen before a sharp dive last week.
Emerging markets were on the upside on Wednesday as the U.S.
dollar weakened and investors sought riskier assets amid bets
that data on Wednesday would show U.S. inflation slowing, which
might be enough to convince the Federal Reserve to end its
aggressive rate hikes - if not this month, at least
soon. MKTS/GLOB
Hidroelectrica ROH2O.BX shares jumped more than 10% on
their debut in Bucharest and were up more than 8% over their IPO
price by midday.
Bucharest's exchange head said the listing could help to
lift it to "emerging market" status, from "frontier" market, in
MSCI's indices.
The index .BETI was up by 2.6%.
High interest rates soured IPO activity in Europe in the
past year although bankers hope Hidroelectrica's listing can be
part of a recovery in the coming months.
Investors are betting interest rates in central Europe will
fall this year, but the still-high carry is helping the region's
currencies.
The forint EURHUF= , backed by the European Union's highest
rates despite some easing steps already taken, has been a main
gainer, and was up 0.2% on Wednesday, at 377.5 to the euro at
0928 GMT.
Further support for the forint came after comments late on
Tuesday by Central Bank Deputy Governor Barnabas Virag, who said
Hungary's central bank will not accelerate cuts in its one-day
deposit rate despite the likelihood of a fall in inflation into
single digits by autumn.
"The weakening of the dollar continues versus the euro and
main currencies after some Fed decision makers signalled the end
of the rate hike cycle may be nearing," MHB Bank said.
"... The expected approaching end of the rate hike cycle by
the U.S. Fed has boosted risk appetite globally and also,
probably last week's forint losses were overdone. Therefore
there is room for a positive correction."
Elsewhere, the Czech crown EURCZK= was steady before
inflation data on Thursday which is expected to show price
growth below 10% for the first time since the start of last
year.
The Polish zloty EURPLN= also held steady at 4.443 versus
the euro, awaiting U.S. inflation data for cues.
"EUR-PLN remains below 4.45. This week the zloty continues
to benefit from the weaker performance of the dollar and greater
appetite for risk in global markets. Today, the US CPI reading
is important for PLN –
"The lower (U.S. inflation) is, the lower the pressure for
Fed rate hikes and the better for the zloty," Alior Bank said.
CEE SNAPSHOT AT
MARKETS 1128 CET
CURRENCI
ES
Latest Previous Daily Change
bid close change in 2023
Czech EURCZK= 23.8500 23.8450 -0.02% +1.29%
crown
Hungary EURHUF= 377.5000 378.4000 +0.24% +5.81%
forint
Polish EURPLN= 4.4430 4.4410 -0.05% +5.55%
zloty
Romanian EURRON= 4.9492 4.9475 -0.03% -0.14%
leu
Serbian EURRSD= 117.1700 117.2500 +0.07% +0.11%
dinar
Note: calculated from 1800 CET
daily
change
Latest Previous Daily Change
close change in 2023
Prague .PX 1296.90 1284.350 +0.98% +7.92%
0
Budapest .BUX 50945.65 50549.40 +0.78% +16.33%
Warsaw .WIG20 2070.98 2054.39 +0.81% +15.57%
Bucharest .BETI 13140.72 12814.18 +2.55% +12.67%
Spread Daily
vs Bund change
in
Czech spread
Republic
2-year
5-year
10-year
Poland
2-year
5-year
10-year
FORWARD
3x6 6x9 9x12 3M
interban
k
Czech Rep CZKFRA < 6.92 6.24 5.38 7.13
PRIBOR=>
Hungary HUFFRA < 13.67 11.44 10.06 15.16
BUBOR=>
Poland PLNFRA < 6.19 5.64 5.14 6.86
WIBOR=>
Note: FRA are for ask prices
quotes
**************************************************
************
(Reporting by Boldizsar Gyori in Budapest
Editing by Jason Hovet; Editing by Kim Coghill)
((boldizsar.gyori@thomsonreuters.com))
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