STOCKS NEWS EMERGING EUROPE-Budapest retreats as OTP drops

                                
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 Warsaw WIG20 <.WIG20>          Bucharest Beti <.BETI>
                                
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 1530 25Feb2009 - Budapest retreats as OTP drops  
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 Shares in OTP Bank <OTPB.BU> fall as much as 12.5 percent late in the
Wednesday session, dragging Budapest's BUX index <.BUX> even 5.6 percent lower,
after breaking through a key technical level as foreign investors dumped the
stock.
                                
 The stock closed 6 percent lower at 1,525 forints after reaching a 7-1/2
year low of 1,420 forints.
                                
 Traders said ongoing purchases of its own shares by the Hungarian lender
have been giving some support to the stock in recent sessions, but it could not
withstand the selling pressure after falling below the 1,500 forints level.
                                
 "There are technical reasons for the fall but not fundamental ones,"
analysts Zoltan Retzey said at BudaCash.
                                
 An equity trader added that there were massive sell positions on the market
by foreign investors but OTP started to come in at 1,450 forint to buy it own
shares and that stabilised the stock.
                                
 Others added that a rating agency downgrade for Ukraine, where OTP owns a
major subsidiary, was also likely behind the fall.
                                
 rm://marton dunai.thomsonreuters.com@reuters.net

                                
 
                                
 1350 25Feb2009 - Polimex gains after Budimex results
 --------------------------------------------------------------
                                
 Polish builder Polimex <MOSD.WA> leads Warsaw jump as much as 10 percent,
benefitting from better-than-expected results from rival Budimex and on hopes of
a potential deal with another construction group, PBG <PBGG.WA>.
                                
 Budimex gains 8 percent, while PBG rises 3 percent, in line with the wider
market gains.
                                
 "The potential PBG deal is helping Polimex," Sebastian Siejko, head trader
at UniCredit in Warsaw, said. "We also have Budimex results, which suggest that
things might be good also for Polimex." 
                                
 Budimex posted fourth-quarter net profit 75 percent larger year-on-year at
32 million zlotys ($9 million), with its full-year 2008 bottom line coming in 7
times the 2007 figure at 105 million.
                                
 PBG said earlier this week it was ready to discuss with Polimex the sale of
its Hydrobudowa <HBWL.WA> unit in return for a large stake in Polimex.
[ID:nLN666619]
                                
 rm://adrian.krajewski.thomsonreuters.com@reuters.net
 ($1=3.607 Zloty)