Wires

CEE MARKETS-Romanian stocks rise after FTSE Russell upgrade, regional currencies ease

Radu-Sorin Marinas

currencies ease@ BUCHAREST, Sept 27 (Reuters) - Central European stock markets rose on Friday with Bucharest hitting an 11-year high after FTSE Russell announced it would assign Romanian equities "secondary emerging" market status from September 2020. Romania's blue chip index rose about 1.0% to 9,659.39, its highest since January 2008, helped by the upgrade from its current "frontier" status. By 0930 GMT, Prague and Warsaw were each up 0.5% on the day, with Budapest rising 0.7%. "Romania's capital markets is joining a more select club of bourses, equivalent to investment grade ... and from now it has a chance to contribute more to boost (the) capitalisation of our economy," Finance Minister Eugen Teodorovici said. The Bucharest Stock Exchange has 84 companies on its main market, with a combined capitalization of 36 billion euros ($39 billion), just a fraction of Warsaw's 250 billion euros where 351 firms are listed. Regional currencies weakened, mirroring the euro's falls, with Hungary's forint leading losses to hit a fresh record low. The single currency held at its lowest level in more than two years. The forint, which has lost about 4.5% versus the euro since the start of the year, dropped to as low as 336.28, and bounced back marginally to trade 0.2% weaker on the day, at 335.89 to the euro at 0901 GMT. "Tuesday's bounce following the central bank rate meeting proved to be short-lived," said a trader in Budapest. "The dollar is strengthening, Hungarian interest rates are low." A weak European economy and uncertainty about the terms of Brexit together with labour shortages in central Europe and the prospect of a slowing economy - all weigh in, the trader added. The Hungarian central bank had projected lower inflation and an economic slowdown and shifted to a more dovish stance on Tuesday, when it left interest rates at the lowest in Central Europe.

CEE SNAPSHOT ATMARKETS 1150 CET

CURRENCIES

Latest Previous Daily Changebid close change in 2019Czech <EURCZK= 25.8580 25.8300 -0.11% -0.58%crown >Hungary <EURHUF= 336.0700 335.2500 -0.24% -4.46%forint >Polish <EURPLN= 4.3888 4.3850 -0.09% -2.26%

zloty

Romanian <EURRON= 4.7500 4.7461 -0.08% -2.02%leu >Croatian <EURHRK= 7.4095 7.4070 -0.03% +0.01%kuna >Serbian <EURRSD= 117.3900 117.4400 +0.04 +0.78%dinar > %Note: calculated from 1800daily CET

change

Latest Previous Daily Changeclose change in 2019Prague 1043.51 1037.100 +0.62 +5.77%0 %Budapest 40789.56 40534.28 +0.63 +4.22%

%

Warsaw 2183.94 2172.47 +0.53 -4.07%

%

Bucharest 9627.50 9528.24 +1.04 +30.39%

%

Ljubljana <.SBITOP 858.82 856.41 +0.28 +6.78%> %Zagreb 1981.14 1959.70 +1.09 +13.29%

%

Belgrade <.BELEX1 753.79 758.44 -0.61% -1.04%

5>

Sofia 569.72 573.68 -0.69% -4.16%

BONDS

Yield Yield Spread Daily(bid) change vs change in

Bund

Czech spread

Republic

2-year <CZ2YT=R 1.2990 -0.0430 +204b -4bpsR> ps5-year <CZ5YT=R 1.0850 -0.0850 +187b -9bpsR> ps10-year <CZ10YT= 1.3310 0.0050 +191b +1bpsRR> ps

Poland

2-year <PL2YT=R 1.4810 -0.0190 +222b -1bpsR> ps5-year <PL5YT=R 1.7830 -0.0110 +257b -1bpsR> ps10-year <PL10YT= 2.0050 -0.0030 +259b +0bpsRR> psFORWARD RATE AGREEMEN

T

3x6 6x9 9x12 3M

interbank

Czech Rep 2.16 2.09 2.11 2.15

<PRIBOR=

>

Hungary 0.27 0.30 0.34 0.21Poland 1.73 1.69 1.65 1.72

Note: FRA are for ask prices quotes

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($1 = 0.9156 euros)

(Additional reporting by gergely Szakacs in Budapest and Alan Charlish in Warsaw; Editing by Susan Fenton)