CEE MARKETS-Czech shares gain on PPF bid for MONETA Bank stake

By Anita Komuves BUDAPEST, Jan 25 (Reuters) - Prague's blue chip index gained 1.9% on Monday, outperforming central European markets, as Czech billionaire Petr Kellner's PPF group made an attempt to buy into MONETA Money Bank, sparking a rally in its shares. By 0920 GMT, shares in MONETA, the Czech Republic's sixth-largest bank, soared nearly 12% to their highest since March 2020. The PPF group's two-stage offer is similar to a failed plan two years ago. Shares in Budapest edged up 0.06% while Warsaw was down 0.74% and Bucharest slid 0.15%. The Hungarian forint firmed 0.11% and was trading at 357.01 ahead of National Bank of Hungary's (NBH) rate meeting on Tuesday. The currency strengthened last week when the weakening of the dollar helped it break out of the 359-362 range. "The forint halted gains on Friday and the market has been quiet since then," a Budapest-based FX trader said. "Investors are waiting for the NBH tomorrow and the U.S. Fed's meeting on Wednesday." According to a Reuters poll of analysts the NBH is expected to leave its key interest rates on hold after a recent warning by a deputy governor that cautious policy was still justified amid the pandemic. The Polish zloty slid 0.1% to 4.5435 versus the common currency. Poland's central bank is unlikely to cut interest rates further because the move will not reduce borrowing costs, rate-setter Grazyna Ancyparowicz said. The bank's governor previously did not rule out more cuts if the coronavirus pandemic causes further significant economic damage. Industrial output data published on Monday showed that the economic impact of the pandemic was milder than expected in Poland. Output rose by 11.2% y/y in December, above forecasts of 8.7%. CEE SNAPSHO AT MARKETS T 1056 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech <EURCZK= 26.0990 26.1120 +0.05 +0.50 crown > % % EURHUF= Hungary <EURHUF= 357.010 357.4000 +0.11 +1.60 forint > 0 % % EURPLN= Polish <EURPLN= 4.5435 4.5389 -0.10% +0.35 zloty > % EURRON= Romanian <EURRON= 4.8750 4.8755 +0.01 -0.21% leu > % EURHRK= Croatian <EURHRK= 7.5660 7.5655 -0.01% -0.25% kuna > EURRSD= Serbian <EURRSD= 117.540 117.5700 +0.03 +0.03 dinar > 0 % % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1068.04 1049.070 +1.81 +3.98 0 % % .BUX Budapest 43657.7 43630.22 +0.06 +3.68 2 % % .WIG20 Warsaw 1938.17 1952.67 -0.74% -2.31% .BETI Bucharest 10320.3 10335.95 -0.15% +5.25 6 % .SBITOP Ljubljana <.SBITOP 941.00 938.43 +0.27 +4.46 > % % .CRBEX Zagreb 1784.81 1793.35 -0.48% +2.62 % .BELEX1 Belgrade <.BELEX1 733.01 733.04 -0.00% -2.08% 5 5> .SOFIX Sofia 503.27 502.30 +0.19 +12.4 % 6% Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R 0.2300 -0.0250 +094b -2bps R R> ps CZ5YT=R 5-year <CZ5YT=R 0.7340 -0.0660 +147b -5bps R R> ps CZ10YT= 10-year <CZ10YT= 1.2540 -0.0170 +179b +0bps RR RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.0220 -0.0760 +074b -7bps R R> ps PL5YT=R 5-year <PL5YT=R 0.3860 -0.0580 +112b -4bps R R> ps PL10YT= 10-year <PL10YT= 1.1920 -0.0330 +173b -1bps RR RR> ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Rep 0.39 0.45 0.56 0.36 <PRIBOR= > Hungary 0.76 0.78 0.80 0.75 Poland 0.19 0.18 0.18 0.21 Note: FRA are for ask quotes prices ********************************************** **************** (Additional reporting by Jason Hovet in Prague, Luiza Ilie in Bucharest and Agnieszka Barteczko in Warsaw; Editing by William Maclean)