WARSAW, June 2 (Reuters) - Emerging European currencies
opened mixed on Wednesday but the Czech crown was up a touch
against the euro as Czech right-wing parties prepared to meet
for talks on forming a coalition after their surprise win in
elections at the weekend.
Three Czech parties (the ODS, TOP09 and Public Affairs)
planned to meet on Wednesday for the first round of trilateral
talks on forming a government with most analysts saying a quick
formation of a coalition would be positive for financial
markets. Building a coalition would require tough negotiations
though, analysts said.
"Investors are waiting on negotiations of the coalition.
Nothing is sure yet, so there has been a correction (from the
gains after) the big election win," a Prague dealer said.
"We can get close to 25 (per euro) but I don't think we will
stay there long ... They can say they'll do reforms, but they
still have to do it and it takes time."
For a Take a Look on the Czech Parliamentary Elections,
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The crown <ERUCZK=> was up 0.1 percent against the euro at
25.712 by 0721 GMT. The Hungarian forint <EURHUF=> and the
Romanian leu <EURRON=> were each 0.1 percent weaker, while the
Polish zloty <EURPLN=> was flat against the common currency.
Poland's ambitious privatisation plans, which aim to raise
some 25 billion zlotys this year, are accelerating with the sale
of the country's No. 2 utility Tauron due around June 30, which
will be Poland's second biggest IPO this year after top insurer
PZU's <PZU.WA> $2.7 billion flotation last month.
"Good news for the zloty really - apart from the weak close
of the US stock markets," analysts at Commerzbank wrote in a
note.
Earlier on Wednesday, sources told Reuters that Poland set a
maximum price for Tauron's initial public offering at 0.7 zlotys
per share, valuing the flotation at some 5.2 billion zlotys
($1.54 billion).
Poland's privatisation plans are seen boosting the Polish
currency, as they should draw foreign investors who would
convert large amounts of foreign currency into zloty.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25,712 25,74 +0,11% +2,36%
Polish zloty <EURPLN=> 4,097 4,097 0% +0,17%
Hungarian forint <EURHUF=> 275,99 275,65 -0,12% -2,04%
Croatian kuna <EURHRK=> 7,258 7,256 -0,03% +0,71%
Romanian leu <EURRON=> 4,18 4,174 -0,14% +1,37%
Serbian dinar <EURRSD=> 102,39 102,46 +0,07% -6,36%
All data taken from Reuters at 0721 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz;
Editing by Susan Fenton)
