BUX again bucks positive global trend

Telco

The Budapest Stock Exchange's main BUX index finished down 0.47% at 17,362.67 Monday, after sinking 0.34% Friday. It is down 6.47% from the end of last year, after it rose 2.15% in 2013. Last week it rose up 0.36% after rising 1.51% the previous week. The Budapest parquet seemed to be immunised from a global upturn for a second day.

Fresh central bank statistics on growing losses of banks resulting from non-performing loans and write-downs for incoming mandatory debtors relief, a batch of surprise measures further curtailing social benefits contained in next year's budget bill, another bill that would open the way to wind up those private pension funds that manage the remnants of mandatory premiums, held investor's nerves on edge Monday.

The latter concerns some HUF 200md of people who opted out of a re-nationalisation of HUF 3,000 bln in mandatory pension funds in 2011.

An amendment to a bill regulating the turning of forex loans into forint debts early next year, introduced in Hungary's parliament by the governing Fidesz party last week-end, would further squeeze interest spreads.

Uncertainty and reluctance to take positions was also shown by the very low market turnover.

OTP lost 0.43% to HUF 3,970 on turnover of HUF 1.22 bln from a HUF 2.56 bln session total, less than third of the daily average this year.

MOL sank 0.90% to HUF 12,085 on turnover of HUF 436 mln.

Magyar Telekom ended flat at HUF 340 on turnover of HUF 131 mln.

Richter retreated 0.32% to HUF 3,768 on turnover of HUF 691 mln.

The bourse's mid-cap BUMIX went out 0.07% higher at 1,470.21.

Elsewhere in the region, Warsaw's WIG20 was down 0.58%, while Prague's PX rose 0.11%.

Western Europe's major indices were mixed ahead of their close Monday, FTSE-100 in London down 0.41%, DAX30 in Frankfurt up 0.54%, and CAC40 in Paris up 0.45%.

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