BUX climbs to new high
The Budapest Stock Exchangeʼs main BUX index finished up 1.79% at 22,821.79, the highest since July 1, 2011, Monday after rising 1.68% Friday. It is up 37.20% from year-end, after losing 10.40% last year. It ended last week up 5.13% over the week after improving 0.83% over the previous week.
While European markets turned into black from red as persistent concerns about Greeceʼs debt situation was offset by optimism that a reshuffled Greek negotiating team would help matters, and bets multiplied for the Fed to postpone its rate hike, the Budapest parquet reached a nearly four-year high the second time in as many days.
Outperforming OTP also in volumes, which is a very rare development, pharma company Richter seduced the majority of investors by announcing that one of its products scaled an important milestone in the process to receive a licence to be used more widely in the European Union. After a European approval, a positive assessment could be expected in the US as well, Erste Investment commented in a note, and said the estimated peak sales of the medicine, Esmya, could double to €200 mln by around 2020.
Other blue chips limped behind after GKI-Ersteʼs combined gauge of consumer and business confidence climbed to minus 2.9 points in April from minus 3.6 points in March, showing that a large majority of consumers were still pessimistic.
The business index rose to 4.9 points from 4.2 points while the consumer index improved to minus 25.0 points in April from minus 25.8 points in March. The assessment of the outlook for the Hungarian economy improved in the industry, remained unchanged in trade and slightly deteriorated among construction and service companies and consumers.
OTP won 2.74% to HUF 6,008, its highest close since June 7, 2011, on turnover of HUF 7.21 bln from a HUF 18.40 bln session total, about 80% above the daily average this year.
MOL lost 0.13% to HUF 14,880 on turnover of HUF 1.88 bln.
Magyar Telekom ended flat at HUF 410on turnover of HUF 228 mln.
Richter surged 3.57% to HUF 4,764, a 15-month closing high on turnover of HUF 8.93 bln.
The bourseʼs mid-cap BUMIX went out 0.77% higher at 1,616.53.
Elsewhere in the region, WIG 20 in Warsaw was up 1.51%, while Pragueʼs PX dropped 0.74%. Western Europeʼs major indices were all up ahead of their close Monday, FTSE-100 in London 0.09%, DAX30 in Frankfurt 1.60%, and CAC40 in Paris 1.08%.
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