CEE equity markets are still soaring, and every major index has massively outperformed the broad EM benchmark over the past two years.

This has nothing to do with macro. When we look at domestic and external macro indicators the region as a whole is profoundly boring by emerging standards, with no sign of unusually strong activity or demand.

But these are small markets, and thus easily driven by company-specific trends and valuation gains. The most glaring example is the role of OTP Bank in Hungary, but gains are relatively concentrated in Czech, Poland and Romania as well.