CEE MARKETS 2-Forint up before reform plan, pharma stocks lose

                                
 * Forint rallies before reform plans
                                
 * Other FX higher or steady; stocks fall
                                
 * Czech, Polish PMIs dip
                                
 * Hungarian pharma stocks lose on subsidy cuts
                                
 
  (Adds Hungary bond yields, stocks drop)
                                
 PRAGUE, March 1 (Reuters) - The forint led emerging European
currencies on Tuesday, rising half a percent before Hungary lays
out details of a reform package meant to save billions of
dollars and put the country's budget on a sustainable path.
                                
 Hungarian assets have rallied this year on bets that the
plan will keep the country's debt rating from falling to junk
status, but while the forint is up 3 percent since the start of
year, it fell back in February in volatile trade.
                                
 The market rallied ahead of the announcement at around 1000
GMT. News portal hvg.hu reported late on Monday the package will
meet market expectations, aiming at annual savings worth 902
billion forints ($4.58 billion) by 2013. [ID:nLDE71R2LX]
                                
 By 0927 GMT, the forint <EURHUF=> had gained 0.5 percent,
bidding at 270.15 to the euro and touching a one-week high. Bond
yields dipped up to 5 basis points.
                                
 The Polish zloty <EURPLN=> also rose, up 0.15 percent on the
day. The Czech crown <EURCZK=> inched down 0.2 percent and the
Romanian leu <EURRON=> was down 0.1 percent.
                                
 Markets digested a dip in manufacturing surveys in Poland
and the Czech Republic. [ID:nPRA005474] [ID:nLDE71R13N]
                                
 "The (reported) details of the (Hungarian) package support
the rally definitely, but global sentiment, even though short
term, adds oil to the rally," a Budapest FX dealer said.
                                
 Analysts and dealers have warned over the past month that
the reforms could disappoint investors, possibly leading to more
of a drop in the markets. SEB analysts said on Tuesday the
forint may just shrug off the news barring something unexpected.
                                
 "It feels as if the market has priced in a credible package
already as the HUF has been rallying for some time now," SEB
said in a trading note.
                                
 "If nothing extraordinary is presented, the forint will most
likely stick to its present level tracking other EM currency
moves."
                                
 
                                
 EURO SUPPORTS, STOCKS SLIP
                                
 Central European currencies benefitted from rising global
risk appetite and a stronger euro versus the dollar as markets
positioned for dovish comments from the U.S. Federal Reserve
later in the day. [ID:nLDE7200A9]
                                
 The region often tracks moves in the euro/dollar cross.
                                
 Stock markets gave up early gains, with shares in Hungarian
drugmaker Egis <EGIS.BU> and rival Richter <GDRB.BU> falling
after a report of steep cuts in state drug subsidies as part of
government plans.[ID:nLDE72005O]
                                
 Investors see the centre-right government's reform plans as
critical after Hungary shook markets last year by forgoing
International Monetary Fund advice in favour of a pro-growth
campaign of cash-grabbing measures. [ID:nLDE71O0HW]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>   24.362   24.319  -0.18%   +2.62%
Polish zloty     <EURPLN=>    3.956    3.962  +0.15%   +0.05%
Hungarian forint <EURHUF=>  270.15   271.4    +0.46%   +2.9%
Croatian kuna    <EURHRK=>    7.419    7.418  -0.01%   -0.53%
Romanian leu     <EURRON=>    4.204    4.201  -0.07%   +0.69%
Serbian dinar    <EURRSD=>  103.39   103.37   -0.02%   +2.45%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -2 basis points to  23bps over bmk*
7-yr T-bond   CZ7YT=RR    -4 basis points to  +84bps over bmk*
10-yr T-bond   CZ9YT=RR    -3 basis points to  +84bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -7 basis points to  +491bps over bmk*
5-yr T-bond   HU5YT=RR    -7 basis points to  +453bps over bmk*
10-yr T-bond   HU10YT=RR  -8 basis points to  +401bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1028 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.
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 (Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Ruth Pitchford)