BUX corrects down on Greece, EU forecast

The ECB's decision to pull the plug on its funding for Greece's financial sector sent shockwaves trough European markets, with the Budapest parquet caught in the whirl as well.

Shortly before close, however, the BUX pared losses while leading European markets cut theirs as well, after a strong start in New York.

Sentiment was also dented by the winter projections of the European Commission which showed Hungary might not be able to benefit from euro area economic growth that should accelerate this year and next even more than expected in the autumn forecast.

The commission expects Hungarian GDP to have grown 3.3% last year, more than the 3.2% projected in the autumn forecast, but to slow to 2.4% this year as against 2.5% in the autumn forecast, and to 1.9% next year instead of 2.0% seen previously. The commission still sees the general government gross debt of Hungary easing this year and next, but its projected ratios to GDP at 77.7% last year, 77.2% this year and 76.1% next year are all higher than 76.9%, 76.4% and 75.2%, respectively, in the autumn forecast.

Hungarian Prime Minister Viktor Orbán said on Wednesday after market close that his main foreign policy goal was maintaining good ties with Russia and Germany, adding that the United States was an important partner but not the central focus of foreign policy.

Richter is to publish fourth quarter result next week, and initial analysts views pencil in an around 50% drop of its bottom line from a year earlier on the Russian rouble's tumble.

OTP lost 0.15% to HUF 3,875 on turnover of HUF 9.24 bln from a HUF 12.31 bln session total, more than two-thirds above the daily average this year.

MOL fell 0.85% to HUF 11,700 on turnover of HUF 1.07 bln

Magyar Telekom rose 0.27% to HUF 368 on turnover of HUF 220 mln.

Richter retreated 2.31% to HUF 3,756 on turnover of HUF 1.26 bln.The bourse's mid-cap BUMIX went out 0.20% higher at 1,462.18.

Elsewhere in the region, the WIG 20 in Warsaw was down 0.07%, while Prague's PX sank 0.92%. Western Europe's major indices were mixed ahead of their close Thursday, FTSE-100 in London up 0.04%, DAX30 in Frankfurt down 0.10%, and CAC40 in Paris up 0.08%.