By Jason Hovet
PRAGUE, Oct 16 (Reuters) - The Polish zloty firmed on
Monday and stocks rose as much as 5%, after exit polls indicated
Poland's ruling nationalists may have lost a parliamentary
majority in Sunday's election, and the opposition had an opening
to take power.
Poland has repeatedly clashed with the European Union over
multiple issues, including rule of law, since Law and Justice
(PiS) came to power in 2015, which has held up EU funds to
central Europe's biggest economy.
The head of the biggest opposition party Civic Coalition
(KO) and former European Council president Donald Tusk has vowed
to mend Warsaw's relations with Brussels.
He has said he would seek to unblock some 110 billion euros
of EU funds earmarked for Poland if he heads a new government.
"On the assumption that the exit polls are broadly accurate,
the election of a liberal/centre-left coalition would imply a
significant policy shift for Poland, especially in terms of its
relations with the EU," Goldman Sachs said in a note.
Bank Millennium analysts said the opposition's return to
power would boost chances of EU fund flows, although no
significant change would come in fiscal policy, where high
spending has lifted budget risks.
The zloty cheered the exit polls that showed KO
and allies winning 248 of 460 seats.
It traded nearly 1% higher at 4.482 to the euro, off a
session high of 4.45 and sitting around levels last seen in
early September, before a surprise Polish interest rate cut sent
the zloty sharply down to nearly 4.70.
Polish stocks rallied, with the blue-chip WIG20 up
as much as 5% in early trading before settling off the day's
highs.
Polish market moves gave a boost to others in central
Europe, where Czech utility CEZ climbed above 1,000
crowns for the first time since going ex-dividend in June.
The Czech crown added 0.15% to 24.675 per euro,
settling off a 15-month low, while Hungary's forint
was up half a percent at 386.70 to the euro.
CEE MARKETS
SNAPSHOT AT 0933
CET
CURRENCIES
Latest bid Previous Daily Change in
close change 2023
EURCZK= Czech 24.6750 24.7110 +0.15% -2.10%
crown
EURHUF= Hungary 386.7000 388.5500 +0.48% +3.29%
forint
EURPLN= Polish 4.4815 4.5255 +0.98% +4.64%
zloty
EURRON= Romanian 0.0000 4.9664 #DIV/0! #DIV/0!
leu
EURRSD= Serbian 117.0600 117.1850 +0.11% +0.21%
dinar
Note: daily change calculated
from 1800 CET
Latest Previous Daily Change in
close change 2023
.PX Prague 1351.97 1346.330 +0.42% +12.50%
0
.BUX Budapest 56307.21 55929.69 +0.67% +28.57%
.WIG20 Warsaw 2027.02 1974.56 +2.66% +13.11%
.BETI Bucharest 14229.28 14277.69 -0.34% +22.00%
Spread Daily
vs Bund change in
spread
Czech
Republic
CZ2YT=RR 2-year 4.7780 -0.1120 +163bps -13bps
CZ5YT=RR 5-year 4.4110 -0.0680 +171bps -9bps
CZ10YT=RR 10-year 4.5520 -0.0280 +178bps -7bps
Poland
PL2YT=RR 2-year 5.3440 0.0820 +220bps +7bps
PL5YT=RR 5-year 5.2950 -0.1330 +260bps -16bps
PL10YT=RR 10-year 5.6130 -0.2200 +284bps -26bps
FORWARD
3x6 6x9 9x12 3M
interbank
Czech Rep 6.39 5.43 4.53 7.04
Hungary 10.78 9.43 7.77 12.06
Poland 5.38 5.07 4.82 5.68
Note: FRA quotes are for ask
prices
**********************************************************
(Reporting by Jason Hovet in Prague; Editing by Varun H K)
Polish zloty, stocks jump after election flags political shift
October 16, 2023 at 04:02 am EDT
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