BUX down on Greece hiccup


The Budapest Stock Exchangeʼs main BUX index finished down 0.70% at 21,844.66 Wednesday after rising 1.03% Tuesday. It is up 31.33% from year-end, after losing 10.40% last year.

In line with European peers, the Budapest parquet turned south in the afternoon on news that a euro zone deal on Greece can not be taken for granted after it seemed to be within reach in the previous two days.

The CEE regionsʼ economic and financial ties with Greece are few, so a failure is unlikely to rattle these countries, but investorsʼ sentiment still reflects anxiety radiating from euro zone markets.

Fresh final data on Hungaryʼs first quarter current account with a sharply improving surplus that pushed the countryʼs net financing capacity to a record high did not impress investors as the current account, however, came in short of some expectations. The data are also history, so they rather just reminded the market to the subsequent, April, preliminary monthly current account, which last week came in with a surplus about half of that in March, due to a trade surplus less than a third of that in March, a net outflow of direct investments instead a net inflow in March, and EU transfers narrowing to less than a third of those in the previous month.

Initially received positively, the National Bank of Hungaryʼs (MNB) base rate cut on Tuesday and its guidance on still more easing to come also raised second thoughts. With inflation picking up, real interest rates could soon turn negative, denting further the moribund market based corporate lending disposition of banks in an economy where consumer confidence is also declining fast, shown by the June survey of GKI-Erste, which was published on Wednesday.

News headlines abroad on Hungary "flouting European asylum rules" or Hungary "drawing European ire as (Prime Minister) Orban suspends accord on refugees" did not contribute to investorsʼ confidence either.

OTP lost 1.33% to HUF 5,550 on turnover of HUF 4.44 bln from a HUF 7.10 bln session total, less than two-thirds of the daily average this year.

MOL dipped 0.03% to HUF 14,450 on turnover of HUF 929m.

Magyar Telekom dropped 1.47% to HUF 402 on turnover of HUF 417m.

Richter retreated 0.28% to HUF 4,230 on turnover of HUF 1.25 bln.

The bourseʼs mid-cap BUMIX went out 0.68% lower at 1,653.41.

Elsewhere in the region, WIG 20 in Warsaw was up 0.43%, while Pragueʼs PX fell 1.34%.

Western Europeʼs major indices were mixed ahead of their close Wednesday, with FTSE100 in London up 0.23%, DAX30 in Frankfurt down 0.71%, and CAC40 in Paris down 0.31%.

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75% MNB

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%

Bulgaria's Household Income, Spending Rise 20% in 2023 World

Bulgaria's Household Income, Spending Rise 20% in 2023

Spar Magyarország Revenue Climbs Close to 16% in 2023 Retail

Spar Magyarország Revenue Climbs Close to 16% in 2023

Hungary Launches HUF 15 bln Tourism Sector Support Program Tourism

Hungary Launches HUF 15 bln Tourism Sector Support Program


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.