Hungary stocks gain most in a month as protest is peaceful
Hungarian stocks rose the most in a month after a peaceful protest to mark the 1956 uprising eased concern of further violent agitation against the government.
OTP Bank Nyrt, the country's largest lender, and Gedeon Richter Nyrt led gains. „The cooling of the political situation adds to investors' confidence,” said Jenő Nagy, who manages about $2.9 billion at ING Investment Management in Budapest. „The market has underperformed the region in the past month.” The BUX Index climbed 496.25, or 2.2%, to 22,619.45, in Budapest, its biggest increase in a month.
KGHM Polska Miedz SA led gains in Poland before it reported earnings, pushing the WIG20 Index up 2.2%. Austria's ATX Index gained 1.3% and the Czech PX added 0.5%. The NTX Index of 30 companies in the region increased 1.8% to 1682.43 in Vienna. Bwin Interactive Entertainment AG, an Austrian Internet bookmaker, jumped after the London-based Times said PartyGaming Plc may bid for part of the business.
Hungarians gathered peacefully on streets November 4, marking the day in 1956 when Soviet troops entered the country to crush the anti-communist uprising, easing concern among police and the government over a resumption of violence that has rocked the city in recent weeks. The BUX advanced 2.9% last month, compared with a 7.5% increase in the regional NTX Index and the WIG20's 6.4% gain. Investors have sold holdings in Hungarian stocks in the past two months on concern that Gyurcsány would resign, stalling plans to cut the biggest budget deficit in Europe.
OTP Bank, which spent more than €1.7 billion ($2.2 billion) in the past five years buying 10 banks from Bulgaria to Russia, rose 2.8% to Ft 7365 forint. The lender may say November 14 that Q3 net income climbed to Ft 46.1 billion (€177.9 million) from Ft 40.9 billion a year earlier, according to an Erste Bank estimate. Gedeon Richter gained 2.6% to Ft 42,595. Eastern Europe's biggest drugmaker may say that Q3 profit rose 3.6% to Ft 11.4 billion on increased drug sales to Russia, according to the median estimate of five analysts surveyed by Bloomberg News. (Bloomberg)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.