title= East Europe Stocks (l only)
byline= Barry Wood
dateline = Prague
Intro: Stock trading has resumed after the Christmas and New
Year's break in the new exchanges in post-communist Eastern
Europe. V-o-A's Barry Wood reports the Warsaw and Budapest
markets got off to impressive starts.
Text: There was optimism Friday in both Budapest and Warsaw.
Stocks prices jumped significantly this week in Hungary as the
B-U-X index gained 29 points on Friday. Volume was at its second
highest level ever. Analysts say investors are cheered by the
International Monetary Fund declaring Hungary's currency
convertible. There are also positive signs about privatization
and increasing hard currency reserves. During 1995 Hungarian
stocks were up nearly 15 percent, the best performance of the big
three East European exchanges.
In Warsaw the stock market gained five percent this week. The
W-I-G index closed at just under eight thousand. For 1995 the
Warsaw market was up nine percent. The market was anticipating a
cut in official interest rates Friday, a move that was announced
after the markets closed.
The Prague stock exchange is in the midst of a three week
Christmas break. Trading resumes on Monday. The Prague market
has the biggest capitalization in the region and has been
attracted strong foreign interest. Stratton Investments of the
Bahamas and Bankers Trust of New York have recently invested more
than 200 million dollars in Czech Stocks. But for 1995 as a
whole the Prague market performed badly, down 24 percent from its
level of December 1994. (Signed)
05-Jan-96 12:32 pm est (1732 utc)
source: Voice of America