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UPDATE 2-Polish markets track wider trends after plane crash

Published 04/12/2010, 05:15 AM
Updated 04/12/2010, 05:36 AM
EUR/PLN
-

* Zloty moving with markets, flat vs euro, up vs dollar

* Warsaw bourse up 0.4 percent in light trade

* Little action on Polish bonds

* Investors await comments on central bank

(Updates zloty, adds shares, fresh analyst quotes)

By Dagmara Leszkowicz and Adrian Krajewski

WARSAW, April 12 (Reuters) - The Polish zloty and shares followed wider marker trends in light trade, proving resilient to a weekend plane disaster that killed the president and dozens of the country's top officials.

Investors, awaiting direction following Saturday's crash which claimed 96 lives, are keeping an especially close eye on developments at the central bank after acting president Bronislaw Komorowski said he would move quickly to find a replacement for bank governor Slawomir Skrzypek, who was among those killed.

The decision could have an impact on the bank's monetary policy, as well as wider implications for moves to halt the rise of the Polish currency and state budget after a row that involved Skrzypek over the size of the 2009 profit transfer from the bank into state coffers.

The zloty, which last week slid off 16-month highs after the central bank intervened in the currency market for the first time in a decade, was little changed against the euro at 3.8710 by 0830 GMT and gained 1.3 percent on the dollar .

The euro rallied against the greenback after euro zone finance ministers approved a multi-billion-euro aid plan for debt-stricken Greece.

"(The crash) is a huge tragedy, but for the market the key thing now is the functioning of the financial system and we do not expect troubles on this front," said Lutz Karpowitz, currency strategist at Commerzbank in Frankfurt.

"At the moment the zloty is hovering around 3.87 and I think it is a decent level for now."

Warsaw's main WIG20 share index <.WIG20> rose 0.4 percent, broadly in line with other European markets, with most blue chips in positive territory. Polish stocks are hovering near 20-month highs.

"Life moves on and what is happening on the stocks market is a vote of confidence for the Polish financial system," said Alek Mazur, trader at Espirito Santo brokerage in Warsaw.

Polish bonds hardly traded with yields unchanged, and dealers said they did not expect a significant pickup in activity any time soon.

Analysts had predicted over the weekend that, after initial nervousness, the markets would stabilise and follow wider trends. [ID:nLDE63A09N]

Poland's economic stewardship is mainly in the hands of Prime Minister Donald Tusk and his cabinet, who have maintained growth during the global credit crisis. President Lech Kaczynski played only a secondary, mainly ceremonial role. [ID:nLDE63B05M]

(Additional reporting by Marcin Goettig and Agata Nalecz, writing by Chris Borowski; editing by John Stonestreet)

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