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CEE MARKETS-Romanian stocks fall after proposal for pension reform

* Romania may make pension funds optional from 2018

* Romanian stocks fall, underperforming region

* Currency markets calm, getting no clues from ECB

* Bonds firm as ECB keeps asset-buying programme

BUDAPEST, Sept 8 (Reuters) - Stocks fell in Bucharest on Friday, underperforming Central European shares, after the Romanian government said it may make a mandatory pension scheme optional starting next year. Making them optional would probably reduce investments by the funds, whose assets totalled 36.06 billion lei ($9.46 billion) at the end of June. Bucharest's main equities index fell 2.5 percent by 1019 GMT. Shares of investment fund Fondul Proprietatea, fell 2.3 percent after it said on Thursday that it might sell its 20 percent stake in hydro-power company Hidroelectrica . The Bucharest exchange has risen 10 percent since the end of 2016, underperforming Warsaw and Budapest this year, partly due to worry about the future of the pension system. The leu ignored the possible pension reform and traded little changed at l4.6 to the euro - like most Central European currencies, around its typical level of recent weeks. The forint was trading around 306 to the euro, the Czech crown at 26.1 and the zloty at 4.25. Bonds gained after the European Central Bank gave no sign it was ready to wind down asset-buying programme. Polish and Hungarian government debt extended the week's gains, and thee yield on Hungarian 10-year bonds dropped 6 basis points to 2.86 percent. "We are firming ... The Fed will be unwilling to do anything because due to the storms there, and the ECB due to the euro's strength," one Budapest-based fixed income trader said.

CEE MARKETS SNAPSH AT 1119 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.097 26.158 +0.23 3.49% 0 0 % Hungary 306.30 305.42 -0.29% 0.82% forint 00 00 Polish zloty 4.2510 4.2503 -0.02% 3.60% Romanian leu 4.5990 4.5990 +0.00 -1.39%

%

Croatian 7.4300 7.4325 +0.03 1.68% kuna % Serbian 119.50 119.55 +0.04 3.22% dinar 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1020.3 1019.1 +0.11 +10.7 2 5 % 1% Budapest 37608. 37783. -0.46% +17.5 98 51 2% Warsaw 2487.2 2491.7 -0.18% +27.6 4 9 9% Bucharest 7781.4 7978.6 -2.47% +9.83 9 2 % Ljubljana 811.35 813.87 -0.31% +13.0

7%

Zagreb 1882.7 1883.6 -0.05% -5.62% 1 7 Belgrade 727.50 729.28 -0.24% +1.41

%

Sofia 701.72 705.87 -0.59% +19.6

6% BONDS

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

Republic

2-year 0 0.022 +075b +1bps

ps

5-year -0.045 0 +032b -2bps

ps

10-year 0.924 0.027 +060b +0bps

ps Poland

2-year 1.662 -0.02 +241b -4bps

ps

5-year 2.508 0.016 +288b -1bps

ps

10-year 3.144 -0.005 +282b -3bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.7 0.8 0.89 0

IBOR=>

Hungary <BU 0.155 0.165 0.2 0.15

BOR=>

Poland <WI 1.755 1.79 1.802 1.73

BOR=>

Note: FRA are for ask quotes prices ********************************************************* *****

($1 = 3.8111 lei)

(Additional reporting by Radu Marinas in Bucharest)