BUX corrects down on refugee worries
The Budapest Stock Exchangeʼs main BUX index finished down 0.43% at 21,126.96 Tuesday after rising 0.65% Monday. It is up 27.01% from year-end, after losing 10.40% last year.
A shot-up in Western markets after mixed US data fueled hopes for a postponement of the US rate hike only helped pare losses in Budapest.
Investors pondered warily the possible economic fallout from the collision course Hungaryʼs government is increasingly on with the EU amidst the refugee crisis.
The European Commission on Tuesday asked the Hungarian government for "clarifications" about its tough new immigration law, as Hungary declared the migrant situation a crisis, and locked down its EU borders in a move that "looks like" contravening United Nations and European Union rules on refugees and asylum, according to the International Organisation for Migration (IOM) and some UN officials.
In a veiled threat to eastern European member states that have resisted EU plans to share out refugees, German Interior Minister Thomas de Maiziere said these were "often" the same countries that receive a lot of development funding from the bloc.
"We need to talk about ways of exerting pressure," Mr de Maiziere told ZDF on Tuesday. European Commission president Jean-Claude Juncker "has suggested that we should look at whether these countries should get less structural funds, which I agree with," the German minister said.
Earlier, Hungarian Economy Minister Mihaly Varga said that financing needs for handling the refugee situation might wobble Hungaryʼs budget. Increased spending can be covered by reallocations in the budget in the short term, but a sustained influx of refugees could require fiscal amendments, the minister said in an interview.
Latest data last week showed Hungaryʼs budget deficit has already surpassed the annual target by the end of August mainly on delayed or suspended EU funding.
German and euro zone ZEW indicators, published on Tuesday, pointing to a larger-than-expected deterioration in analysts and institutional investors sentiment in September also weighed.
Richter stood out on hopes that one of its drugs could be cleared in the US soon, but OTP Bank fell on reports about a regular morning meeting of central bank and commercial bank heads which suggested the central bank deplores what it termed "low competition" among lenders in the household market and "high interest rates" on mortgages.
OTP lost 1.58% to HUF 5,435 on turnover of HUF 2.55 bln from a HUF 6.64 bln session total, nearly a third short of the daily average this year.
MOL dropped 0.95% to HUF 13,055 on turnover of HUF 1.72 bln.
Magyar Telekom rose 0.51% to HUF 396 on turnover of HUF 169m.
Richter advanced 1.37% to HUF 4,290 on turnover of HUF bln.
The bourseʼs mid-cap BUMIX went out 0.58% lower at 1,613.89.
Elsewhere in the region, WIG 20 in Warsaw was up 0.10%, while Pragueʼs PX raked up 0.04%.
Western Europeʼs major indices were all up ahead of their close on Tuesday, FTSE100 in London 1.13%, DAX30 in Frankfurt 0.99%, and CAC40 in Paris 1.44%.
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