BUX down on global gloom
The Budapest Stock Exchangeʼs main BUX index finished down 1.50% at 23,125.86 Friday after climbing 0.19% Thursday. It is up 39.03% from year-end, after losing 10.40% last year.
The Budapest parquet ended a hectic week on a cautious note, weighed down by global markets reeling from a cocktail of dismal Chinese data and a falling yuan currency, low commodity prices heralding deflation risks and emerging market weakness, the continuing discount of disappointment over ECBʼs milder-than-expected easing last week, and the US rate hike looming next week.
Hardest hit were fast risers of previous week, OTP Bank and drugmaker Richter.
On the domestic turf, neither a confirmation of its 2.5% economic growth projection for next year by the National Bank of Hungary (MNB) confounding expectations for a cut, nor new proposals from the National Economy Ministry for amendments to the bank levy legislation did not help.
The new government proposals would cut the upper rate of the bank levy next year more than it was legislated in June, but confirm 2009 total assets as base of the tax, backtracking on its earlier concession to use the lower total assets of last year as reference. According to analysts calculations the proposed modificationsʼ sum total is thus quasi neutral to banks in terms of tax to be paid next year.
Fresh statistics from Eurostat out on Friday showed Hungary was 24th among the 28 EU member countries in terms of per-capita GDP at purchasing power standards at the end of last year, with its pace of convergence having been one of the slowest in the CEE region in the last ten years.
OTP lost 2.04% to HUF 5,750 on turnover of HUF 5.44 bln from a preliminary HUF 12.15 bln session total, a third above the daily average this year.
MOL fell 0.36% to HUF 13,700 on turnover of HUF 1.94 bln.
Magyar Telekom dipped 1.21% to HUF 409 on turnover of HUF 809m.
Richter retreated 2.14% to HUF 5,300 on turnover of HUF 3.80 bln.
The bourseʼs mid-cap BUMIX went out 0.59% lower at 1,606.51.
Over the week the BUX plunged 2.13% after sinking 0.35% in the previous week.
OTP plunged 3.59% after letting go 0.77% last week.
MOL dived dropped 0.76 % after improving 0.77% in the preceding week.
Magyar Telekom fell 1.92% after rising 2.46 % last week.
Richter eased 1.89% after deteriorating 1.91% over the week before.
The BUMIX ended the week 0.90% lower after losing 0.88% over last week.
Elsewhere in the region, WIG 20 in Warsaw was down 2.31%, while Pragueʼs PX shed 0.94%.
Western Europeʼs major indices were all down ahead of their close on Friday, FTSE100 in London 1.97%, DAX30 in Frankfurt 2.17%, and CAC40 in Paris 1.66%.
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.