BUX down in line with Europe


The Budapest Stock Exchange's main BUX index finished down 1.35% at 17,717.78 Thursday, after rising 0.42% Wednesday. It is down 4.56% from the end of last year, after it rose 2.15% in 2013.

After Wednesday's defiance, BUX succumbed to the global gloom Thursday as a decision be the European Central Bank (ECB) showed the bank was not ready to widen its limited quantitative easing for the time being. This was in line with general expectations, but frustrated some hopes in the wake of dismal euro area economic data, hitting euro area peripheral and emerging Europe shares as well as core markets in Europe.

Locally, the chief whip of governing FIDESZ said that party MPs would discuss the draft of a law on a "fair banking system" as well as the conversion of FX loans to forint-based loans in November. This reminded investors that the tribulations of Hungary's banking system were far from an end, and pressure could still grow especially if the European Commission reopens excessive deficit procedure against Hungary as it hinted at it Wednesday. However, Magyar Telekom turned positive in the final hour of trade, and Richter again outperformed the whole day.

OTP plunged 2.99% to HUF 4,030 on turnover of HUF 6.16 bln from a HUF 8.92 bln session total, just short of the daily average this year. MOL dumped 2.36% to HUF 11,815 on turnover of HUF 980 mln. Magyar Telekom added 0.83% to HUF 363 on turnover of HUF 519 mln. Richter advanced 0.79% to HUF 3,950 on turnover of HUF 718 mln. The bourse's mid-cap BUMIX went out 0.77% lower at 1,507.99.

Elsewhere in the region, Warsaw's WIG20 was down 0.80%, while Prague's PX dove 1.52%. Western Europe's major indices were all down ahead of their close Thursday, FTSE-100 in London 1.31%, Frankfurt's DAX30 1.46%, and CAC40 in Paris 2.24%.

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