E.European Markets End Mixed Over Week
BUDAPEST, Nov 26 (Reuters) - Central and eastern European markets were pulled in different directions this week, with activity in Warsaw and Prague focused on macroeconomic news, while the Budapest share market was hit by profit-taking on its recent rally.
WARSAW
Parliament's approval over the weekend of a key tax reform bill averted a threat of Finance Minister Leszek Balcerowicz's resignation and boosted Poland's money and share markets.
The zloty peaked at a six-week high of 0.3 percent above the centre of its trading band on Wednesday, helped by new investment inflows into the country.
But renewed worries over whether President Aleksander Kwasniewski would sign the tax measure or veto it pulled the zloty lower on Thursday to 0.5 percent below its mid-point.
The Warsaw bourse moved 2.7 percent higher in the week to Thursday, despite a two-day correction.
Bank Handlowy was in focus, with large investors buying it ahead of the December 9 shareholders meeting, which will vote on its merger with smaller bank BRE. The plan is opposed by the state treasury and treasury-controlled insurer PZU, which jointly hold a 15 percent stake in Handlowy.
Central Europe's largest fuel firm, Polski Koncern Naftowy SA, started trading on Friday, significantly increasing the Warsaw stock exchange's capitalisation.
It was opened trading on Firday at 22.2 zlotys a share, up 13.8 percent on its issue price of 19.5 zlotys.
PRAGUE
The Czech central bank (CNB) made yet another step in a long string of interest rate cuts on Thursday, shaving a further 25 basis points off its key repo rate to 5.25 percent.
Governor Josef Tosovsky said the cut was made with an eye on the end-2000 inflation target, which the CNB may undershoot.
The currency lost about 0.04 crowns against the euro after the cut to 36.15 but later firmed to 35.96/00 after Tosovsky's comments and was seen higher in the near term.
Analysts said the cut is unlikely to help the CNB to get much closer to the end-2000 net inflation target of 3.5 to 5.5 percent, because the crown will probably remain strong and the economy will not get a major boost from the decision either.
Top Czech shares ended 1.2 percent lower on the week, led down by savings bank Ceska Sporitelna, which rebounded slightly on Thursday after a six-day slide to end the week 4.3 percent lower at 163.5. The Reuters-HN-Wood index of the ten-most liquid stocks ended at 1349.4 points.
BUDAPEST
Hungarian shares fell for four straight sessions in sluggish trade during the week, shedding two percent with the market entering a phase of profit-taking after a month-long rally.
The market still remains more than 10 percent higher than its early-October level, having benefited from a rally on emerging markets, calmed nerves over the country's Y2K readiness and a batch of stronger-than-expected marcoeconomic figures.
Telecom Matav slipped 3.1 percent, but still remains more than 15 percent higher than before it announced recently that it would boost its stakes to 100 percent in two mobile telephone operators, Westel 450 and 900.
OTHER MARKETS
* BRATISLAVA - Blue chips were mostly flat or little down in continued dull trading and low volumes in automatic trade. Higher activity was seen in direct, over-the-counter trading, mainly due to usual end-year portfolio swaps and transfers.
* BUCHAREST - The Bucharest bourse sagged, mainly on falls early in the week of top stocks, refrigerator maker Arctic and carmaker Dacia. Arctic on Monday plunged 25 percent in terms of average quotes, on which the BET-C index is based, correcting sharply after previous gains on news of a capital increase. The next day, Dacia sank five percent on what traders said was the end of speculative buying.
* LJUBLJANA - Slovenia's SBI share index .SBI) lost two percent due to uncertainty whether a planned merger between port operator Luka Koper and shipping company Intereuropa will be approved by the government. The cabinet last week urged Luka to postpone the planned merger.
* SOFIA - Plastics producer Sofiaplast traded most by volume this week, selling 39,885 shares at 22.86 levs per share. ($=1.909 Bulgarian Levs). Total turnover rose to 1.151 million levs ($602,200) in five trading sessions to Thursday from 403,846 levs in light trade.
* ZAGREB - Blue chip Pliva and Zagrebacka Banka notched up handsome gains through the week as Croatian parliament and government made hurried preparations to install an interim president in place of ailing Franjo Tudjman.
WARSAW
Parliament's approval over the weekend of a key tax reform bill averted a threat of Finance Minister Leszek Balcerowicz's resignation and boosted Poland's money and share markets.
The zloty peaked at a six-week high of 0.3 percent above the centre of its trading band on Wednesday, helped by new investment inflows into the country.
But renewed worries over whether President Aleksander Kwasniewski would sign the tax measure or veto it pulled the zloty lower on Thursday to 0.5 percent below its mid-point.
The Warsaw bourse moved 2.7 percent higher in the week to Thursday, despite a two-day correction.
Bank Handlowy was in focus, with large investors buying it ahead of the December 9 shareholders meeting, which will vote on its merger with smaller bank BRE. The plan is opposed by the state treasury and treasury-controlled insurer PZU, which jointly hold a 15 percent stake in Handlowy.
Central Europe's largest fuel firm, Polski Koncern Naftowy SA, started trading on Friday, significantly increasing the Warsaw stock exchange's capitalisation.
It was opened trading on Firday at 22.2 zlotys a share, up 13.8 percent on its issue price of 19.5 zlotys.
PRAGUE
The Czech central bank (CNB) made yet another step in a long string of interest rate cuts on Thursday, shaving a further 25 basis points off its key repo rate to 5.25 percent.
Governor Josef Tosovsky said the cut was made with an eye on the end-2000 inflation target, which the CNB may undershoot.
The currency lost about 0.04 crowns against the euro after the cut to 36.15 but later firmed to 35.96/00 after Tosovsky's comments and was seen higher in the near term.
Analysts said the cut is unlikely to help the CNB to get much closer to the end-2000 net inflation target of 3.5 to 5.5 percent, because the crown will probably remain strong and the economy will not get a major boost from the decision either.
Top Czech shares ended 1.2 percent lower on the week, led down by savings bank Ceska Sporitelna, which rebounded slightly on Thursday after a six-day slide to end the week 4.3 percent lower at 163.5. The Reuters-HN-Wood index of the ten-most liquid stocks ended at 1349.4 points.
BUDAPEST
Hungarian shares fell for four straight sessions in sluggish trade during the week, shedding two percent with the market entering a phase of profit-taking after a month-long rally.
The market still remains more than 10 percent higher than its early-October level, having benefited from a rally on emerging markets, calmed nerves over the country's Y2K readiness and a batch of stronger-than-expected marcoeconomic figures.
Telecom Matav slipped 3.1 percent, but still remains more than 15 percent higher than before it announced recently that it would boost its stakes to 100 percent in two mobile telephone operators, Westel 450 and 900.
OTHER MARKETS
* BRATISLAVA - Blue chips were mostly flat or little down in continued dull trading and low volumes in automatic trade. Higher activity was seen in direct, over-the-counter trading, mainly due to usual end-year portfolio swaps and transfers.
* BUCHAREST - The Bucharest bourse sagged, mainly on falls early in the week of top stocks, refrigerator maker Arctic and carmaker Dacia. Arctic on Monday plunged 25 percent in terms of average quotes, on which the BET-C index is based, correcting sharply after previous gains on news of a capital increase. The next day, Dacia sank five percent on what traders said was the end of speculative buying.
* LJUBLJANA - Slovenia's SBI share index .SBI) lost two percent due to uncertainty whether a planned merger between port operator Luka Koper and shipping company Intereuropa will be approved by the government. The cabinet last week urged Luka to postpone the planned merger.
* SOFIA - Plastics producer Sofiaplast traded most by volume this week, selling 39,885 shares at 22.86 levs per share. ($=1.909 Bulgarian Levs). Total turnover rose to 1.151 million levs ($602,200) in five trading sessions to Thursday from 403,846 levs in light trade.
* ZAGREB - Blue chip Pliva and Zagrebacka Banka notched up handsome gains through the week as Croatian parliament and government made hurried preparations to install an interim president in place of ailing Franjo Tudjman.
