BUX down on global woes
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%.
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.