(Recasts with Richter plunging, Polish Ciech share falls)
By KrisztinaThan
BUDAPEST, Feb 12 (Reuters) - Central European stock markets rebounded on Monday from sharp falls last week, with Hungarian drug maker Richter bucking the trend and plunging three percent on adverse news about one of its main products.
The region's main stock exchanges jumped following a positive close on U.S. markets on Friday, with Warsaw leading gains with a rise of 1.7 percent.
However, shares of chemical firm Ciech dropped 1.8 percent to 58.80 zlotys after news that Poland's anti-corruption agency arrested six people in an investigation into the previous government's privatisation of the company. Richter shares also dropped three percent to 5,800 forints by 1358 GMT, accelerating their decline, while the Budapest bourse's main BUX index was trading half a percent higher.
Richter shares had already plummeted more than six percent on Friday when the company said it expected a temporary loss in revenues from its uterine fibroid medicine Esmya, due to restrictions imposed on the product by the European Medicines Agency (EMA).On Monday Richter said it expected flat revenues this year from 2017, calculated without revenues from Esmya. "Richter reported mixed 4Q earnings, current news on Esmya overshadow the favourable trends," analysts at brokerage Equilor said in a note.
"From a technical aspect, once the resistance at the level of 6,200 (forints) is broken, Richter could fall further based on the chart ... with the next possible stop at 5,800 and then at 5,500 forints."
Currencies were firmer, with the Polish zloty up half a percent, outperforming its peers. Hungary's forint was only 0.1 percent firmer at 1358 GMT.
"In the short term, global market impacts could be driving the market, and we cannot exclude the possibility of further weakening (in the forint) and volatile movements in the exchange rate," CIB Bank analysts said in a note.
Even the forint's losses have been moderate amid last week's global turmoil, despite the Hungarian central bank's ultra-dovish stance.
Hungary's inflation remains below the central bank's target, so continued loose monetary policy is warranted, the bank's chief economist Daniel Palotai told a conference on Monday.
The Czech crown, which has been firming on the Czech central bank's rate hikes since last year, was 0.2 percent stronger.
A Reuters poll published last week showed the crown would continue strengthening and in 12 months would be at levels not seen since late 2012, propelled by expectations for tighter monetary supply. The region's currencies performed relatively well last week, helped by Central Europe's strong growth prospects, withstanding the storm on global markets amid a large stock selloff.
CEESNAPSHOT AT
MARKETS1458 CET
CURRENCI
ES
LatestPreviousDaily Change
bid close changein 2018Czech 25.3620 25.4100+0.19%+0.71%crown Hungary 312.1500312.4900+0.11%-0.40%forintPolish 4.17754.1975+0.48%-0.03%zloty Romanian 4.65204.6578+0.12%+0.60%leu Croatian 7.44657.4435-0.04%-0.22%kunaSerbian 118.2600118.5000+0.20%+0.20%dinar Note:calculated from1800 CETdaily change
LatestPreviousDaily Change
close changein 2018Prague 1115.881106.060+0.89%+3.50%
0Budapest 38525.1838320.32+0.53%-2.16%Warsaw 2423.54 2382.79+1.71%-1.53%Bucharest 8115.09 8002.55+1.41%+4.66%Ljubljana 818.32803.51+1.84%+1.48%Zagreb 1863.76 1864.48-0.04%+1.13%Belgrade <.BELEX15768.69766.62+0.27%+1.17%
>Sofia 702.53693.87+1.25%+3.70%
BONDS
Yield Yield SpreadDaily
(bid) changevs Bund change
inCzech spreadRepublic2-year <CZ2YT=RR0.57900.0510 +114bps +4bps
>5-year <CZ5YT=RR1.08000.0100 +109bps +1bps
>10-year<CZ10YT=R1.8250 -0.0060 +107bps -1bps
R> Poland2-year <PL2YT=RR1.7640 -0.0010 +233bps -1bps
>5-year <PL5YT=RR2.7850 -0.0090 +279bps -1bps
>10-year<PL10YT=R3.5630 -0.0050 +281bps -1bps
R>
FORWARDRATEAGREEMEN
T
3x6 6x9 9x123M
interban
kCzech Rep <0.981.121.280.90
PRIBOR=> Hungary <0.070.120.230.02
BUBOR=>Poland <1.751.771.851.72
WIBOR=>Note: FRAare for ask prices quotes**************************************************************(Reporting by Krisztina Than, Editing by Richard Balmforth and William Maclean)
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