By Jason Hovet
       PRAGUE, Oct 16 (Reuters) - The Polish zloty firmed on
Monday and stocks rose as much as 5%, after exit polls indicated
Poland's ruling nationalists may have lost a parliamentary
majority in Sunday's election, and the opposition had an opening
to take power.
    Poland has repeatedly clashed with the European Union over
multiple issues, including rule of law, since Law and Justice
(PiS) came to power in 2015, which has held up EU funds to
central Europe's biggest economy.
    The head of the biggest opposition party Civic Coalition
(KO) and former European Council president Donald Tusk has vowed
to mend Warsaw's relations with Brussels.
    He has said he would seek to unblock some 110 billion euros
of EU funds earmarked for Poland if he heads a new government.
    "On the assumption that the exit polls are broadly accurate,
the election of a liberal/centre-left coalition would imply a
significant policy shift for Poland, especially in terms of its
relations with the EU," Goldman Sachs said in a note.
    Bank Millennium analysts said the opposition's return to
power would boost chances of EU fund flows, although no
significant change would come in fiscal policy, where high
spending has lifted budget risks.
    The zloty cheered the exit polls that showed KO
and allies winning 248 of 460 seats.
    It traded nearly 1% higher at 4.482 to the euro, off a
session high of 4.45 and sitting around levels last seen in
early September, before a surprise Polish interest rate cut sent
the zloty sharply down to nearly 4.70.
    Polish stocks rallied, with the blue-chip WIG20 up
as much as 5% in early trading before settling off the day's
    Polish market moves gave a boost to others in central
Europe, where Czech utility CEZ climbed above 1,000
crowns for the first time since going ex-dividend in June.
    The Czech crown added 0.15% to 24.675 per euro,
settling off a 15-month low, while Hungary's forint
was up half a percent at 386.70 to the euro.
                        CEE MARKETS                                        
                        SNAPSHOT AT 0933                                   
                                            Latest bid  Previous  Daily    Change in
                                                        close     change   2023
 EURCZK=    Czech                           24.6750     24.7110    +0.15%  -2.10%
 EURHUF=    Hungary                         386.7000    388.5500   +0.48%   +3.29%
 EURPLN=    Polish                          4.4815      4.5255     +0.98%   +4.64%
 EURRON=    Romanian                        0.0000      4.9664    #DIV/0!  #DIV/0!
 EURRSD=    Serbian                         117.0600    117.1850   +0.11%   +0.21%
                        Note: daily change calculated                               
                        from 1800 CET                                      
                                            Latest      Previous  Daily    Change in
                                                        close     change   2023
 .PX        Prague                             1351.97  1346.330   +0.42%    +12.50%
 .BUX       Budapest                          56307.21  55929.69   +0.67%    +28.57%
 .WIG20     Warsaw                             2027.02   1974.56   +2.66%    +13.11%
 .BETI      Bucharest                         14229.28  14277.69   -0.34%    +22.00%
                                                                  Spread   Daily
                                                                  vs Bund  change in
 CZ2YT=RR   2-year                          4.7780      -0.1120   +163bps  -13bps
 CZ5YT=RR   5-year                          4.4110      -0.0680   +171bps  -9bps
 CZ10YT=RR  10-year                         4.5520      -0.0280   +178bps  -7bps
 PL2YT=RR   2-year                          5.3440      0.0820    +220bps  +7bps
 PL5YT=RR   5-year                          5.2950      -0.1330   +260bps  -16bps
 PL10YT=RR  10-year                         5.6130      -0.2200   +284bps  -26bps
                                            3x6         6x9       9x12     3M
            Czech Rep                             6.39      5.43     4.53       7.04
            Hungary                              10.78      9.43     7.77      12.06
            Poland                                5.38      5.07     4.82       5.68
                        Note: FRA quotes are for ask                                

 (Reporting by Jason Hovet in Prague; Editing by Varun H K)