BUX down amidst continuing European upturn
The Budapest Stock Exchange's main BUX index finished down 0.67% at 17,156.37 Thursday, after rising 0.68% Wednesday. It is down 7.58% from the end of last year, after it rose 2.15% in 2013. Renewed commitment by the ECB to do everything necessary against the risk of prolonged low inflation provided no lift to the Budapest parquet where local worries weighed.
Hungary's industrial output rose in September after a plunge in August, but mostly because a big automaker resumed full production after a stoppage in August.
Fresh data also showed the annual rise was below analyst forecasts, and lagged the year-to-date average rise as well.
Mood was also soured by junior governing alliance partner KDNP's parliamentary group leader who said the government has discussed and supported a proposal by KDNP to restrict shop openings on Sundays from early next year.
OTP got support from the national economy minister who reiterated that according to law borrowers must bear the foreign exchange risk when forex debts will be converted into forint loans next year. "This limits the government's room of manoeuvre," the minister added.
The government has still not revealed the actual details of the conversion.
MOL faired well on good quarterly results.
Magyar Telekom fell after it confirmed investors fears for no dividend for a second year. Current legislative proposals backed by governing Fidesz however suggest that while the communication tax will now not be "extended" with a tax on internet traffic after the government had crossed the internet tax from next year's budget bill, the company may still be able to deduct the communication tax from the corporate income tax, a measure that had been proposed for the dropped internet tax.
Loser of the day was Richter after it posted 50% less third quarter profits than a year ago on costs and narrowing markets in Russia and Ukraine, and the company cut its operating profit margin guidance, although it raised its revenue target.
OTP won 0.23% to HUF 3,950 on turnover of HUF 1.97 bln from a HUF 5.97 bln session total, less than three-quarters of the daily average this year.
MOL gained 0.52% to HUF 11,700 on turnover of HUF 1.40 bln .
Magyar Telekom fell 1.44% to HUF 343 on turnover of HUF 308 mln.
Richter retreated 2.98% to HUF 3,716 on turnover of HUF 1.97 bln .
The bourse's mid-cap BUMIX went out 1.16% higher at 1,478.15.
Elsewhere in the region, Warsaw's WIG20 was down 0.34%, while Prague's PX raked up 0.01%. Western Europe's major indices were all up ahead of their close Thursday, FTSE-100 in London 0.04%, DAX30 in Frankfurt 0.58 %, and CAC40 in Paris 0.49%.
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.