BUX falls and underperforms

Telco

The Budapest Stock Exchange's main BUX index finished down 1.05% at 17,319.42 Thursday, after sliding 0.99% Wednesday. It is down 6.70% from the end of last year, after it rose 2.15% in 2013. Following the global trend, and in line with Central European assets falling across the board as investors concerned by a deteriorating global economic outlook cut their exposure to risk, the Budapest parquet sank for the third day in a row.

And, as opposed to the previous day, it now sank some more than its leading European peers which started to consolidate towards close, after deep plunges Wednesday and Thursday intraday.

In local news, annual growth of construction slowed in August from July, data from Hungary's statistical office showed Thursday.

Hungary's new banking law, mandating financial institutions to refund retail debtors for conduct deemed unfair, is excessive and inimical to banks, Raiffeisen Bank International's chief financial officer said Thursday. But Martin Gruell added he expected this new law to be the last attack against banks in Hungary.

A new front of animosity seems to open between Hungary and the EU, too, as the European Commission launched infringement proceedings against Hungary on Thursday over the country's restrictions on land ownership by foreigners, saying they could violate EU law on the free movement of capital.

Hungary's governing Fidesz party called the commission's move an attempt to put pressure on Hungary.

OTP ended flat at HUF 3,920 on turnover of HUF 5.92 bln from a HUF 11.69 bln session total, two-fifths above the daily average this year.

MOL lost 2.25% to HUF 11,500 on turnover of HUF 2.12 bln.

Magyar Telekom rose 0.28% to HUF 356 on turnover of HUF 1.82 bln.

Richter retreated 1.76% to HUF 3,900 on turnover of HUF 1.29 bln.

The bourse's mid-cap BUMIX went out 0.09% lower at 1,483.66.

Elsewhere in the region, Warsaw's WIG20 was up 0.01%, while Prague's PX dove 2.42%.

Western Europe's major indices were all down ahead of their close Thursday, FTSE-100 in London 0.57%, DAX30 in Frankfurt 0.20%, and CAC40 in Paris 1.03%.

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