CEE MARKETS-Hungary's forint extends losses on rate-cut prospects

By Alan Charlish WARSAW, April 20 (Reuters) - The forint weakened further on Thursday as comments from Hungary's central bank Deputy Governor Barnabas Virag signalling what could be the region's first rate cut continued to weigh on the currency. The Hungarian forint fell sharply on Wednesday after Virag said the central bank could cut its 25% top collateralised loan rate next week as part of a "multi-step process" towards policy normalisation, and economists said the effects were still being felt. "I think the forint has been underperforming since yesterday because of this comment from the central bank deputy governor," said Marcin Sulewski, an econommist at Ipopema Securities. "With Hungarian inflation at around 25% year-on-year any comments regarding cuttering interest rates at this stage could weigh on the forint." At 0909 GMT, the forint was 0.25% weaker against the euro at 378.85. The Czech crown was 0.36% weaker at 23.507. Meanwhile, the Polish zloty was the the only currency in the region in positive territory, firming 0.22% to 4.61. "Maybe it has something to do with positions that were popular in the past where you were long Czech and short zloty and long forint and short zloty as well," said a Warsaw-based currency trader. "It was a carry trade basically, and I think those positions are being liquidated as we speak." In Warsaw, the blue-chip WIG 20 stock index rose 1.09%, boosted by discount retailer Pepco Group and media and telecommunications group Cyfrowy Polsat after both companies announced their earnings. Shares of Pepco Group rose around 3% after it reported a 22.8% surge in first-half revenue, as its low prices chimed with cash-strapped consumers and it opened a net 166 new stores. Cyfrowy Polsat rose around 3.8% after its results to top the WIG 20. The main stock index in Prague was down 0.25%, while Budapest's benchmark index edged 0.28% higher.

CEE SNAPSHOT AT

MARKETS 1109

CET

CURRENCI

ES

Latest Previo Daily Change us

bid close change in 2023 EURCZK= Czech 23.5070 23.423 -0.36% +2.77% crown 0
EURHUF= Hungar 378.8500 377.90 -0.25% +5.43% y 00

forint
EURPLN= Polish 4.6100 4.6200 +0.22% +1.73% zloty
EURRON= Romani 4.9300 4.9286 -0.03% +0.25% an leu
EURRSD= Serbia 117.2100 117.29 +0.07% +0.08% n 50

dinar

Note: calculated from 1800 CET

daily

change

Latest Previo Daily Change us

close change in 2023 .PX Prague 1411.96 1415.5 -0.25% +17.49% 100
.BUX Budape 43386.03 43263. +0.28% -0.93% st 82
.WIG20 Warsaw 1917.62 1896.8 +1.09% +7.01% 7
.BETI Buchar 12448.71 12467. -0.15% +6.73% est 08
.SBITOP Ljublj 1237.68 1245.0 -0.59% +18.01% ana 5
.BELEX1 Belgra <.BELEX15 888.37 888.05 +0.04% +7.73% 5 de >
.SOFIX Sofia 611.92 616.31 -0.71% +1.73%

Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republ

ic
CZ2YT=R <CZ2YT=RR 5.7070 -0.008 +275bps +0bps R 2-year > 0
CZ5YT=R <CZ5YT=RR 5.1570 -0.059 +261bps -5bps R 5-year > 0
CZ10YT= <CZ10YT=R 4.7760 -0.044 +228bps -4bps RR 10-yea R> 0

r

Poland
PL2YT=R <PL2YT=RR 6.1610 -0.011 +321bps -1bps R 2-year > 0
PL5YT=R <PL5YT=RR 6.2110 0.0360 +366bps +4bps R 5-year >
PL10YT= <PL10YT=R 6.1930 0.0140 +370bps +2bps RR 10-yea R>

r

FORWARD

3x6 6x9 9x12 3M interban k Czech < 7.17 6.86 6.22 7.18 Rep PRIBOR=>

Hungar < 14.52 12.75 11.35 16.27 y BUBOR=>

Poland < 6.89 6.85 6.53 6.90 WIBOR=>

Note: are for ask prices

FRA

quotes

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(Reporting by Alan Charlish; Editing by Sherry Jacob-Phillips)

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