BUX edges up despite Western European gloom

The BUX index showed mixed movement on Thursday, rising in the first two hours of trade after a weak opening, but losing momentum by noon. In the afternoon share prices were again increasing but negative influence spreading over from foreign markets took its toll and the BUX finished near the break-even point.

In a good sign to the future of SME lending the National Bank of Hungary (MNB) allotted HUF 618 bln of a new three-year interest rate swap (IRS) conditional on lending activity at the first tender of such swaps on Thursday. The volume was far above the original offer of just HUF 200 bln although the MNB warned that demand is likely to drop at the upcoming tenders. The MNB said earlier it plans to tender HUF 1,000 bln of the swaps at tenders to be held until the end of March.

OTP lost 0.05% to HUF 5,960 on turnover of HUF 5.24 bln from a HUF 9.83 bln session total.

MOL was up 0.47% at HUF 13,850 on turnover of HUF 1.76 bln.

Magyar Telekom was down 0.50% at HUF 395 on turnover of HUF 187 mln.

Richterʼs share price was unchanged at HUF 5,600 on turnover of HUF 2.58 bln.

The bourseʼs mid-cap BUMIX finished 0.10% lower at 1,658.40.

Elsewhere in the region, the WIG-20 in Warsaw was up 1.54%, while Pragueʼs PX index gained 0.76%.

Worse-than-estimated company earnings, jittery international oil prices, and worries about global growth and the performance of the Chinese economy kept investors on edge in Western Europe.

Western Europeʼs major indices were down ahead of the end of trading. The FTSE100 in London lost 1.47%, the DAX30 in Frankfurt was down by 2.69%, and the CAC40 in Paris was down 1.77%.