Czech utility company CEZ gains on ministry's dividend counter-proposal



By Anita Komuves

BUDAPEST, June 20 (Reuters) - Shares in Czech majority state-owned utility company CEZ rose more than 2% on Monday, outpacing gains in the wider Prague index, after the finance ministry submitted a counter-proposal on dividend ahead of a June 28 general shareholder meeting.

CEZ's shares were up 2.29% by 0914 GMT, and have gained 89% in the past year as electricity prices rise and boost the profit outlook.

The government has been laying plans to offer people a discounted energy rate, and Prime Minister Petr Fiala said on Sunday that CEZ dividends would help pay for that, although he did not mention any extraordinary dividend.

Prague's stock index .PX was up 0.6% on Monday. Equities elsewhere in the region were up, with Budapest .BUX 0.78% stronger and Warsaw .WIG20 adding 0.34%. Bucharest .BETI gained 1.21%.

Currencies in central Europe were rangebound in thin turnover on Monday as trade volumes were low due to U.S. markets being closed for a holiday.

"The forint is trading near the psychologically important level of 400, but there is nothing notable happening. Liquidity is so tight that even a smaller flow can swing the rate," an FX trader in Budapest said.

The forint EURHUF= hovered at 399.90 per euro, a touch stronger than the record low of 403 it touched last week, pressured by a global negative market mood which added to local factors.

The latter includes soaring inflation, a row with the EU over recovery funds, the slowing of the central bank's rate hikes, a high budget deficit and a series of recently announced windfall taxes on banks and certain companies.

Hungary's government could keep its new windfall tax on airlines levied on departing passengers from July beyond its currently planned two-year lifetime, Economic Development Minister Marton Nagy said on Monday.

Nagy also said that the government has decided to extend a favourable credit programme offered to small businesses at interest rates of up to 3.5%, well below current market rates, until the end of the year to avoid a credit squeeze.

Elsewhere, the Czech crown EURCZK= and the Romanian leu EURRON= were little moved, while the Polish zloty EURPLN= added 0.55% and was trading at 4.6620 per euro.

CEE

SNAPSH AT

MARKETS OT

1127

CET

CURREN

CIES

Latest Previo Daily Change

us

bid

close change in

2022 Czech

<EURCZK 24.720 24.749 +0.12 +0.61 crown

=>

0

0

%

% Hungary <EURHUF 399.90 400.30 +0.10 -7.63% forint =>

00

00

% Polish <EURPLN 4.6620 4.6875 +0.55 -1.52% zloty

=>

% Romania <EURRON 4.9450 4.9441 -0.02% +0.06 n leu

=>

% Croatia <EURHRK 7.5130 7.5165 +0.05 +0.06 n kuna =>

%

% Serbian <EURRSD 117.35 117.40 +0.04 +0.20 dinar

=>

00

00

%

% Note:

calculated from

1800

daily

CET

change

Latest Previo Daily Change

us

close change in

2022 Prague

.PX

1298.3 1290.6 +0.60

7

700

% Budapes .BUX

39604. 39299. +0.78 -21.92 t

71

75

%

% Warsaw <.WIG20 1682.3 1676.6 +0.34 -25.79

>

0

7

%

% Buchare .BETI 12290. 12142. +1.21 -5.90% st

17

91

% Ljublja <.SBITO 1146.6 1149.7 -0.28% -8.67% na

P>

0

8

Zagreb <.CRBEX 1997.9 2003.6 -0.29% -3.92%

>

1

7

Belgrad <.BELEX 815.01 819.51 -0.55% -0.70% e

15>

Sofia

<.SOFIX 612.64 612.79 -0.02% -3.62%

>

Yield Yield Spread Daily

(bid) change vs

change

Bund

in Czech

spread Republi

c

<CZ2YT= 6.6920 0.0700 +565b +11bp 2-year RR>

ps

s

<CZ5YT= 6.2130 0.1230 +479b +16bp 5-year RR>

ps

s

<CZ10YT 5.6840 -0.014 +405b +1bps 10-year =RR>

0

ps Poland

<PL2YT= 7.9830 -0.015 +694b +3bps 2-year RR>

0

ps

<PL5YT= 8.2390 -0.053 +682b -1bps 5-year RR>

0

ps

<PL10YT 7.9450 0.0420 +631b +7bps 10-year =RR>

ps

FORWARD

3x6

6x9

9x12

3M

interb

ank Czech

<CZKFRA

7.72

7.91

7.84

6.57 Rep

><PRIBO

R=>

Hungary <HUFFRA

9.39 10.04 10.03

7.63

><BUBOR

=>

Poland <PLNFRA

8.31

8.45

8.45

6.88

><WIBOR

=>

Note:

are for ask

FRA

prices

quotes

****************************************

**********************


Additional reporting by Jason Hovet in Prague; editing by Uttaresh.V

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