orchestrated to try to restore confidence in a battered sector, although investor focus shifted on Monday to the massive hit some Credit Suisse bondholders will take.
Swiss authorities brokering the merger have said 16 billion Swiss francs ($17 billion) of Credit Suisse's
Additional Tier 1 (AT1) debt will be written down to zero.
"The question arises who owned these securities and who will be affected by the consequences of Credit Suisse takeover and the redemption of these securities," mBank analyst Michal Konarski said in reference to the drop in Polish bank shares.
Warsaw's WIG 20 index was off session lows by midday, trading down 1.1% at 1139 GMT after falling more than 2% earlier in the day.
Prague's stock index fell over 1% to hit a two-month low before cutting some losses. Listed lenders Komercni Banka and Moneta Money Bank were down 1-2%, in line with other banks in Europe.
Banks have built up defences since the 2008 global financial crisis.
Czech central bank Vice-Governor Jan Frait was quoted as saying in an interview with Hospodarske Noviny published on Monday that Czech banks had no significant ties to Credit Suisse and that risks to the domestic sector were small or negligible. Among currencies, the forint led losses, bouncing around the sensitive 400 per euro level, and was down 0.5% at 399.65 at midday. The forint has given up all of its 2023 gains - which had been around 7% - this month. "Negative news has a much bigger impact on the forint, which is due to its high 'Beta', and to the fact that its gains since the start of the year were due to the inflow of hot money," Magyar Bankholding said. Hungary's central bank has maintained an 18% quick deposit rate since last October, when the forint hit record lows beyond 430 to the euro. Its base rate of 13% is also the highest in the European Union. Elsewhere, the Czech crown inched to the firm side of 24 per euro, but has fallen over 1% in the last week. Poland's zloty was steady on the day at 4.7015 to the euro, with corporate wage data from February providing support.
CEE SNAPSHO AT
MARKETS T 1239 CET
CURRENC
IES
Latest Previous Daily Change
bid close change in 2023
EURCZK Czech <EURCZK 23.9820 24.0100 +0.12% +0.73%
= crown =>
EURHUF Hungary <EURHUF 399.650 397.5000 -0.54% -0.05%
= forint => 0
EURPLN Polish <EURPLN 4.7015 4.7030 +0.03% -0.25%
= zloty =>
EURRON Romanian <EURRON 4.9210 4.9212 +0.00% +0.44%
= leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05%
= kuna =>
EURRSD Serbian <EURRSD 117.200 117.3000 +0.09% +0.09%
= dinar => 0
Note: calculated from 1800
daily CET
change
Latest Previous Daily Change
close change in 2023
.PX Prague 1306.91 1317.550 -0.81% +8.75%
0
.BUX Budapest 40911.3 40771.24 +0.34% -6.58%
4
.WIG20 Warsaw <.WIG20 1659.68 1678.16 -1.10% -7.38%
>
.BETI Buchares 12139.8 12227.12 -0.71% +4.08%
t 4
.SBITO Ljubljan <.SBITO 1178.95 1186.15 -0.61% +12.41%
P a P>
.BELEX Belgrade <.BELEX 893.64 897.50 -0.43% +8.37%
15 15>
.SOFIX Sofia <.SOFIX 590.81 606.59 -2.60% -1.78%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.3120 -0.0270 +306bp +15bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 4.7090 -0.0740 +271bp +5bps
RR RR> s
CZ10YT <CZ10YT 4.3860 -0.0890 +234bp -1bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 5.8060 -0.0840 +355bp +9bps
RR RR> s
PL5YT= 5-year <PL5YT= 5.8280 -0.0610 +383bp +6bps
RR RR> s
PL10YT <PL10YT 5.9170 -0.0820 +387bp -1bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interban k Czech <CZKFRA 6.96 6.46 5.73 7.19 Rep ><PRIBO
R=>
Hungary <HUFFRA 15.05 13.37 12.12 16.31 ><BUBOR
=>
Poland <PLNFRA 6.69 6.42 5.96 6.90 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Jason Hovet in Prague, Krisztina Than in Budapest, and Anna Banacka in Gdansk; editing by Barbara Lewis)
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