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Views Article – Sharenet Wealth

Europe, Forex

Lender OTP boosts Budapest stock index, regional FX treads water

By Radu-Sorin Marinas and Krisztina Than BUCHAREST, Aug 9 (Reuters) – Hungary led central European share gains on Friday, driven by strong earnings by OTP , the region’s biggest independent lender, while currencies trod water, mirroring the euro that shrugged off Italy’s ruling coalition tensions. OTP shares initially rose as much as 2.6% before paring gains marginally to trade at 12,600 by 0830 GMT, outperforming Budapest’s as its net profit jumped 18% on the year in the second quarter to 105.4 billion forint. OTP Bank Nyrt Deputy CEO Laszlo Bencsik told a news conference that the operating environment in Hungary is “very positive,” with 4.8% gross domestic product rise expected this year. Bencsik added the bank’s recent acquisitions in Montenegro and in Moldova will already have an impact on the third quarter’s results. “Besides the relatively favourable international sentiment, the better than expected results published by OTP could also help the stock market rise this morning,” said brokerage Equilor. Hungary’s rose as much as 0.9%. Other stocks in the region were mixed, with Poland’s blue-chip WIG 20 index down 0.6%, Prague’s PX index rising 0.3% and Bucharest’s easing 0.4%. By 0840 GMT the forint and the Czech crown both edged down by same 0.1% token while the Romanian leu and the Polish zloty were virtually unchanged. Elsewhere, minutes of the Aug. 1, Czech central bank’s (CNB) meeting showed its board voted unanimously to leave interest rates unchanged at 2.00%. CEE SNAPSHO AT 1037 MARKETS T CET CURRENC IES Latest Previous Daily Change bid close change in 2019 Czech <EURCZK= 25.8220 25.7990 -0.09% -0.45% crown > Hungary <EURHUF= 324.570 324.1600 -0.13% -1.07% forint > 0 Polish <EURPLN= 4.3215 4.3210 -0.01% -0.74% zloty > Romanian <EURRON= 4.7255 4.7225 -0.06% -1.51% leu > Croatian <EURHRK= 7.3890 7.3793 -0.13% +0.28% kuna > Serbian <EURRSD= 117.540 117.6400 +0.09% +0.65% dinar > 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2019 Prague 1023.37 1020.5300 +0.28% +3.73% Budapest 40655.4 40389.38 +0.66% +3.87% 1 Warsaw 2145.36 2158.88 -0.63% -5.77% Bucharest 9085.66 9121.20 -0.39% +23.05% Ljubljana <.SBITOP 856.93 859.44 -0.29% +6.55% > Zagreb 1899.94 1897.72 +0.12% +8.64% Belgrade <.BELEX1 746.59 742.05 +0.61% -1.98% 5> Sofia 584.27 583.82 +0.08% -1.71% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 0.9900 -0.0040 +185bp +1bps R> s 5-year <CZ5YT=R 0.8000 0.0130 +166bp +3bps R> s 10-year <CZ10YT= 0.9980 0.0070 +159bp +4bps RR> s Poland 2-year <PL2YT=R 1.5760 0.0200 +244bp +4bps R> s 5-year <PL5YT=R 1.8240 0.0210 +268bp +4bps R> s 10-year <PL10YT= 2.0070 0.0000 +259bp +3bps RR> s FORWARD RATE AGREEMENT 3×6 6×9 9×12 3M interbank Czech Rep 2.01 1.87 1.69 2.15 <PRIBOR= > Hungary 0.28 0.31 0.33 0.25 Poland 1.72 1.69 1.68 1.72 Note: FRA are for ask quotes prices ************************************************ ************** (Editing by Keith Weir)


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