BUX down in jittery trade
The Budapest Stock Exchange's main BUX index finished down 0.36% at 17,677.86 Tuesday, after rising 0.23% Monday. It is down 4.77% from the end of last year, after it rose 2.15% in 2013.
Late in the afternoon a positive turn of global market trend following the strong start in New York helped improve the picture on the Budapest parquet, too, but by close it painfully felt the larger effect of a global escape from risky assets in view of the world economic outlook deteriorating almost day by day.
Hungarian industrial output data from August, published on Tuesday, were also bad. The main holiday month, August, is traditionally week, so the 5.7% monthly fall, however unusual, is not necessarily alarming, but the big annual slowdown of production as well as domestic and export sales growth to mostly nought-point figures from mostly double-digits in earlier months showed that car production alone might not save the day, analysts say.
The government seems to be worried for EU grants, too, as reflected by a government order obliging the relevant ministries to scrutinise 64 government-backed large investment projects. Some of them are running late, which could endanger the related EU funds from the 2007-2013 EU budget allocations as the end-2015 deadline for their disbursement is nearing.
OTP fell 0.07% to HUF 4,040 on turnover of HUF 2.61 bln from a HUF 4.07 bln session total, a tad less than half of the daily average this year.
MOL lost 0.38% to HUF 11,910 on turnover of HUF 446 mln.
Magyar Telekom shed 0.58% to HUF 345, a close to four-month low, on turnover of HUF 433 mln.
Richter retreated 0.62% to HUF 3,977 on turnover of HUF 516 mln.
The bourse's mid-cap BUMIX went out 0.05% lower at 1,493.99.
Elsewhere in the region, Warsaw's WIG20 was up 0.41%, while Prague's PX sank 1.08%.
Western Europe's major indices were all up ahead of their close Tuesday, FTSE-100 in London 0.48%, DAX30 in Frankfurt 0.32%, and CAC40 in Paris 0.28%.
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.