Prague index retreats from fresh high, currencies stall
PRAGUE, April 20 (Reuters) - Central Europe's currencies moved sideways on Tuesday, struggling to capitalise on a drop in the U.S. dollar as the region continued to cool after the past month's gains, while the Prague bourse's hot streak also fizzled.
Prague's PX index .PX retreated midday after climbing to its highest since January 2020 in early trade, pulled down by a correction in MONETA Money Bank MONET.PR shares.
Among gainers, antivirus software group Avast AVST.PR AVST.L led, with shares rising over 2% after solid first-quarter earnings led it to confirm a 2021 revenue growth outlook at the upper end of its 6-8% range.
The London-listed group also led the FTSE.
On currency markets, Hungary's forint EURHUF= was steady at 361.0 to the euro and the Polish zloty EURPLN= sat at 4.551, both still showing signs of a correction seen recently.
"With the dovish position of the MPC, which does not indicate a possibility of interest rate hikes, further appreciation of the zloty may be limited," PKO BP said in a note.
"We assume that the EUR/PLN will remain in the 4.55-4.57 range in the near future."
Elsewhere, Romania's leu EURRON= was down less than 0.1% a day after an auction in which the finance ministry sold more than expected.
The Czech crown EURCZK= edged up 0.1% to 25.905 per euro, steady amid a row with Russia after Prague voiced suspicions that Russian intelligence had been involved in explosions at an ammunition depot in 2014. Moscow said the allegations were absurd.
The row is the biggest between Prague and Moscow since the end of Soviet domination of eastern Europe in 1989.
Utility CEZ's CEZP.PR shares held near highs last seen in 2015 after the Czech government said on Monday it would not invite Rosatom to take part in security assessments before a planned tender for a new unit at CEZ's Dukovany nuclear power plant.
That effectively rules Russia out of the deal.
"Given the way the contracts with the state are set and 100% financing by the state, the course of the tender should not have a major impact on the company itself," J&T Banka analysts said.
change in 2021 EURCZK Czech
<EURCZK 25.9050 25.9390 +0.13% +1.25% =
EURHUF Hungary <EURHUF 361.0000 360.915 -0.02% +0.48% =
4.5512 4.5521 +0.02% +0.18% =
EURRON Romanian <EURRON
4.9285 4.9257 -0.06% -1.29% =
EURHRK Croatian <EURHRK
7.5690 7.5725 +0.05% -0.28% =
EURRSD Serbian <EURRSD 117.4500 117.550 +0.09% +0.10% =
change in 2021 .PX
1106.15 1108.01 -0.17% +7.69%
42089.01 42388.0 -0.71% -0.04%
<.WIG20 1997.67 1998.99 -0.07% +0.69%
.BETI Buchares .BETI 11111.79 11103.9 +0.07% +13.32
% .SBITO Ljubljan <.SBITO 1049.96 1049.66 +0.03% +16.55 P
% .CRBEX Zagreb
<.CRBEX 1878.36 1881.75 -0.18% +8.00%
.BELEX Belgrade <.BELEX
770.13 768.60 +0.20% +2.87% 15
521.55 520.57 +0.19% +16.54
change vs Bund change
0.6900 0.0410 +137bp
1.4000 -0.0470 +198bp
1.8230 -0.0440 +205bp
0.1150 0.0080 +079bp
0.8290 0.0010 +141bp
1.5280 0.0140 +175bp
Note: FRA quotes
are for ask
Reporting by Jason Hovet in Prague, Alan Charlish in Warsaw, and Anita Komuves in Budapest; Editing by Jan Harvey
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