BUX corrects up, then down
The Budapest Stock Exchangeʼs main BUX index finished down 0.15% at 20,687.22 Wednesday after plunging 2.45% Tuesday. It is up 24.37% from year-end, after losing 10.40% last year.
With tailwind from West European peers and headwind from neighboring emerging markets, the Budapest parquet corrected up a bit for most of the day, just to finish in the red again, albeit slightly, mainly on MOL.
Unhindered on a day free from fresh domestic data, central bank statistics on still strong, but diminishing current account surplus quarter-on-quarter in the second quarter mainly on goods trade notwithstanding, the fairly positive trend was supported by market mood in Western bourses, after the euro zone composite PMI came in somewhat weaker than expected, but showed growth spread more evenly in the area with France entering the growth league. Data suggested that GDP growth in the euro zone should have been steady in the third quarter compared to the second quarter despite analystsʼ earlier projections for a slowdown.
Euro area countries, chiefly Germany, are Hungaryʼs main economic partners in terms of trade and investment.
The benevolent European market mood held out even as the European Central Bankʼs (ECB) head told the European Parliament the ECB needed more time to assess whether to beef up its asset-buying program. Investors read the message as rather pointing to preparing action than precluding it.
But in the final quarter of an hour, the BUXʼs gain evaporated as MOL fell ever more steeply on blurred downstream outlook, exacerbated by an announcement on Monday that MOLʼs executive vice president for exploration and production was leaving the company for personal reasons.
A note from Hungaryʼs central bank announcing that unused funds from the Funding for Growth Scheme Plus (FGS Plus) program for SMEs will be reallocated fully to the original FGS scheme, pointed to on-going difficulties in corporate lending, due to low demand on bleak perspectives rather than to lack of supply.
The main loser of the previous day with 4.22% dive, OTP corrected up 0.98% to HUF 5,277 on turnover of HUF 5.32 bln from a HUF 11.20 bln session total, nearly a quarter above the daily average this year.
MOL lost a further 3.01% to HUF 12,225 after a fall of 2.02% on Tuesday, on turnover of HUF 2.84 bln.
Magyar Telekom lost another 0.52% to HUF 379 after a Tuesday drop of 1.55%, on turnover of HUF 309m.
Richter advanced 1.63% to HUF 4,482 following a loss of 1.41% on Tuesday, on turnover of HUF 2.70 bln.
The bourseʼs mid-cap BUMIX went out 1.00% lower at 1,594.23.
Elsewhere in the region, WIG 20 in Warsaw was down 1.09%, while Pragueʼs PX sank 0.74%.
Western Europeʼs major indices were all up ahead of their close on Wednesday, FTSE100 in London 1.88%, DAX30 in Frankfurt 0.71%, and CAC40 in Paris 0.46%.
Avg Hourly Pay Rate for Blue-collar Workers Climbs 16% in Q1
Bulgaria's Household Income, Spending Rise 20% in 2023
Job Fair and Career Prep at Corvinus Starts Tomorrow
Spago Budapest Offering Unique Sunday Brunch Experience
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
