BUX down on global woes

Telco

The Budapest Stock Exchangeʼs main BUX index finished down 0.52% at 22,731.64 Thursday, after rising 1.16% Wednesday. It is up 36.66% from year-end, after losing 10.40% last year.

The BUX slipped from its new almost four-year closing high on Wednesday as even fresh statistics on a surprise jump of Hungarian industrial output in March could not save the Budapest parquet from partially succumbing to a global rout of assets on fears the recent surge in first-rated yields, the euro and energy costs could snuff out the only recently-formed hopes of a solid euro zone recovery.

Comments Wednesday evening from US Fed Chair Janet Yellen that suggested the years-long stock rally may have driven prices too high and exposed debt investors to too much risk did not help either. Ms Yellenʼs remarks came during a conversation with IMF Managing Director Christine Lagarde before an audience at the IMFʼs headquarters in Washington, after Ms Lagarde asked about the possibility that the Fedʼs rock-bottom interest-rate policy is leading to bubbles in financial markets.

OTP was also subdued on remarks from Erste Group head Andreas Treichl who said Hungaryʼs government breached a February agreement with EBRD on not to load banks with further burdens by compelling them to finance a special compensation fund for clients of a failed brokerage.

Richter corrected down after a shot-up on Wednesday on better-than-expected first-quarter results.

OTP lost 1.07% to HUF 6,000 on turnover of HUF 7.88 bln from a HUF 13.55 bln session total, more than a quarter above the daily average this year.

MOL ended flat at HUF 15,250 on turnover of HUF 3.63 bln.

Magyar Telekom gained 1.22% to HUF 415 on turnover of HUF 359m.

Richter retreated 1.30% to HUF 4,540 on turnover of HUF 1.60 bln.

The bourseʼs mid-cap BUMIX went out 0.65% higher at 1,633.66.

Elsewhere in the region, WIG 20 in Warsaw was up 0.03%, while Pragueʼs PX rose 1.12%. Western Europeʼs major indices were mixed ahead of their close Thursday, with FTSE100 in London down 0.57%, DAX30 in Frankfurt up 0.65%, and CAC40 in Paris down 0.26%.

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