BUX benefits from ECB
The Budapest Stock Exchangeʼs main BUX index finished up 0.68% at 22,908.99 Thursday, after diving 1.99% Wednesday. It is down 4.23% from year-end, after surging 43.81% last year.
After oscillating around breakeven in the morning, the Budapest parquet shot up in the afternoon, as stabilizing oil prices and hints for more accommodating European Central Bank (ECB) policy boosted markets all over the euro zone, out of more than 13-month troughs reached on Wednesday.
The ECB stayed pat on Thursday, but "it will be necessary to review and possibly reconsider our monetary policy stance at our next meeting in early March," said President Mario Draghi at the bankʼs press briefing, citing manifold downside risks including the turmoil in financial markets and concerns over China and other emerging markets.
Late in the afternoon, however, the rise stalled on dismal jobless claims and Philadelphia manufacturing data from the US.
And the BUX underperformed all day long as it seems a little overpriced after last yearʼs spectacular rise, analysts say.
On the domestic turf, November statistics on accelerating wage growth both in monthly and annual terms supported as well, although employment fell on the month and growth slowed over the year, mainly on thinning employment in the worst paid sectors.
OTP won 0.19% to HUF 5,725 on turnover of HUF 8.43 bln from a preliminary HUF 12.34 bln session total, about a fifth above the daily average of the last 52 weeks.
MOL increased 1.67% to HUF 13,095 on turnover of HUF 1.18 bln.
Magyar Telekom added 0.76% to HUF 398 on turnover of HUF 209 mln.
Richter advanced 0.47% to HUF 5,400 on turnover of HUF 2.42 bln.
The bourseʼs mid-cap BUMIX went out 0.03% lower at 1,629.54.
Elsewhere in the region, WIG 20 in Warsaw was up 0.57%, while Pragueʼs PX garnered 0.46%.
Western Europeʼs major indices were all up ahead of their close on Thursday, FTSE100 in London 1.85%, DAX30 in Frankfurt 2.02%, and CAC40 in Paris 2.07%.
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.