Summary of economic news released on Wednesday, March 28
Economic Sentiment Indicator Moderately Dropped over March
The economic sentiment indicator in Slovakia posted a moderate drop in March. The Statistics Office data show it going down 0.4 percentage points in the third month of this year to 131.7 points due to negative development of all its components but the confidence indicator in services. The economic sentiment indicator was 7.3 percentage points higher in a year-on-year comparison and exceeded the long-term average by 8.2 percentage points, announced the Slovak Statistics Office on Wednesday.
Industrial Producer Prices Up 0.3 Percent in February
Industrial producer prices in Slovakia increased by 0.3 percent in February over the previous month. Prices of products of industrial producers for the local market grew 1.8 percent from January. Prices of electricity, gas, steam and heated water rose 4.4 percent, prices of mineral raw materials mounted by 0.9 percent, while prices of products of industrial manufacturing went down by 0.1 percent, the Statistics Office of the Slovak Republic informed SITA on Wednesday.
Asseco Completes Acquisition of a Majority Stake in Datalock
On March 15, the Antitrust Office of the Slovak Republic approved the acquisition of a 51-percent stake in the company Datalock by software company Asseco Slovakia. Asseco's Dana Madunicka said that following the decision the contract on the transfer of the stake came into effect. The companies signed it in January of this year.
Slovakia's January Current Account Surplus was First in Years
According to preliminary data of the National Bank of Slovakia (NBS), Slovakia showed a SKK 7.7 billion surplus on the current account of the balance of payments in January. That is the best figure to be reported in the past ten years. Trade balance was the chief factor to positively influence the c/a development. It ended January with a surplus of SKK 4 billion, which is a significant improvement compared with a SKK 8.2 billion gap a year ago.
NBS Reports Slovak Crown Gained 2.4 Pct. against the Euro in February
Slovak currency firmed against its euro reference currency by 2.4 percent in February when its exchange rate moved from 35.279 SKK/EUR to 34.464 SKK/EUR. The average exchange rate appreciated by 0.5 percent. The crown diverged from its central parity of 38.455 SKK/EUR most significantly on February 23, when the exchange rate was fixed at 34.283 SKK/EUR, meaning a 10.85-percent appreciation from the central parity. This information comes from the February report of the National Bank of Slovakia (NBS).
Central Bank's FOREX Reserves Moderately Up in February
Aggregate FOREX reserves of the National Bank of Slovakia (NBS) reached USD 14.0805 billion by the end of February 2007, which represents a moderate monthly increase of USD 75.8 million. Behind this development is a negative balance of receipts, showing a deficit of USD 140.9 million, chiefly as a result of the outflow of funds within foreign payment transactions for NBS clients. The deficit was compensated by positive exchange rate differences of USD 216.7 million as the result of USD/EUR cross rate changes in the monitored period, according to data released by the central bank on Wednesday.
Ability Development SK and Datalan Complete their Merger
Slovak software companies Ability Development SK and Datalan will merge as of April 1. They will operate under the joint name Datalan, a.s., reported Datalan director general Miroslav Melichercik. One of the largest IT companies in Slovakia will be established through this merger. Its turnover will exceed SKK 1 billion. "The merger will significantly increase the stake of services in company turnover, including software development and software solutions," added Mr. Melichercik.
UniBanka, HVB Bank and CAC Leasing Soon be Integrated in UniCredit
The integration process of Unibanka, HVB Bank and the universal leasing company CAC Leasing Slovakia into the financial group UniCredit will be completed in Slovakia within days. On April 2 both banks will merge under the trade name UniCredit Bank Slovakia and the leasing company will change its trade name to UniCredit Leasing Slovakia. The integration will also affect clients of these financial companies to a certain extent. This concerns a change in CAC Leasing's account in the new UniCredit Bank Slovakia, where the bank code will change. Nevertheless both accounts will be in parallel operation until June 30, 2007, as chief of CAC Leasing marketing department Sabina Vomackova told the SITA news agency.
Foreign Direct Investments in Slovakia at SKK 57.703 Bln in 2006
The influx of foreign direct investments in Slovakia totaled SKK 57.703 billion last year, which is 2.5 times more than in 2005 when foreign direct investments totaled SKK 21.883 billion. The corporate sector contributed solely to last year's increase in foreign direct investment with SKK 58.159 billion. In contrast, the banking sector reported a decline in investment volume of SKK 456 million, according to information from the National Bank of Slovakia (NBS).
MONEY MARKET: High Liquidity Surplus Persists on the Market
The interbank market remains in high liquidity surplus after the settlement of the National Bank of Slovakia's (NBS) sterilization repo tenders. On Wednesday, SKK 185 billion from the repo tender on Tuesday left and SKK 170 billion returned to the sector after two weeks. "The banks will sterilize excess liquidity in the central bank until the end of the week," said Slovenska Sporitelna's Pavel Janosik. Commercial banks will certainly have no difficulty meeting the March minimum reserve requirement. The banks deposited SKK 12.942 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Wednesday, meeting the March requirement on a cumulative basis at 104.06 percent. An additional SKK 186.192 billion ended up in the central bank's overnight sterilization.
STOCK MARKET: Trading was Lackluster on Wednesday
The Bratislava Stock Exchange (BCPB) registered lackluster trading on Wednesday. Slovakia's official SAX share index stayed at 412.72 points despite transactions with shares of two SAX base titles, namely the power engineering company SES Tlmace and the crude oil refiner Slovnaft. Turnover on the Bratislava Stock Exchange (BCPB) went down from SKK 25.384 billion on Tuesday to SKK 350.906 million on Wednesday with SKK 1.175 million in share trading.
FOREX MARKET: Crown Weakens Slightly Under Regional Influences
The exchange rate of the Slovak crown against the euro moved on Wednesday in a band of about thirteen hallers. The crown started to weaken under regional influences after opening. On Tuesday, after the meeting of the NBS Bank Board, the crown strengthened and the atmosphere of the market eased up. Slovak currency opened trading on Wednesday at 33.42 SKK/EUR. CSOB's Richard Brza reported that other regional currencies posted significant losses that partially affected the crown. The crown closed slightly weaker at 33.48 SKK/EUR.