Q3 reports expected to push up share prices temporarily
The publication of third-quarter reports by Hungary's listed companies are expected to prompt a short-term buying wave of shares, but share prices will start to rise steadily only in the coming year, according to analysts at OTP Bank.
Most companies whose shares are traded on the Budapest Stock Exchange (BÉT) will publish their Q3 reports in mid-November. The analysts said in a monthly report that they expected to see a steady rise in share prices only in 2007, when investors regain their confidence in Hungary's economic policy and the trend in the region improves. At the same time, however, the economy will show the negative effects of slower growth and a fall in state spending, they added.
Hungary's political situation is expected to stabilise, the general government deficit will narrow and the country's financing requirement will be reduced, according to the analysts. Hungary's risk premium will become smaller. But this will be countered by a growing risk premium on global markets. Long-term yields will fall significantly in the coming twelve months, according to the report, therefore the analysts recommended these terms to investors. (Mti-Eco)
ADVERTISEMENT
Number of Liquidations Increasing Rapidly
Orbán's Salary Increased to HUF 4.178 mln
Hungary Tops out HUF 300bn Munitions Complex
Around 2,800 Events Take Place in European Capital of Cultur...
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.
