New issues, issuers key to stock exchange strategy in 2018

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Photo courtesy Budapest Stock Exchange

The Budapest Stock Exchange (BÉT) needs new issues and new issuers as it continues to build up Hungaryʼs capital market, the bourseʼs Chairman-CEO Richárd Végh said at a press conference on Thursday, as summarized by state news agency MTI.   

Unveiling the bourseʼs strategy for 2018 and assessing the highlights of 2017, Végh said the aim is to strengthen the real economy through investments in local businesses with the help of the capital market.

New issuers on the bourse could be big companies as well as SMEs, and may even include real estate companies, he added.

Végh noted that the stock exchange saw its biggest listing in 20 years last year with the floating of the shares of haulier Wabererʼs. The BÉTʼs other big achievement, he added, was creating a professional rapport with SMEs that have potential to list their shares.

The bourse chief said holdings of BÉT-listed shares by retail investors had reached a new record, climbing over HUF 500 billion. Based on the number of retail securities accounts, which stands at around 2 million, he estimated that 50,000-100,000 Hungarians actively buy and sell shares.

Among other developments last year, the government launched a HUF 20 bln fund to support listings on the bourse in September. Companies that want to float their shares can tap the fund for the next 15 years to support preparations for listings.

Most recently in December, the BÉT launched three mortgage bond indices, unique in the region, in cooperation with the National Bank of Hungary (MNB), majority owner of the bourse.

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