BUX falls further

Telco

The Budapest Stock Exchangeʼs main BUX index finished down 0.58% at 18,522.42 Wednesday after sinking 0.24% Tuesday. It is up 11.35% from year-end, after losing 10.40% last year.

Thought to be slightly overbought in the run-up to a near nine-month high on Thursday last week on ECB QE optimism, the Budapest parquet drifted further down in waiting for the Fedʼs statement after close. If the Fed signals an early beginning of its long-expected tightening cycle, higher-yielding emerging market assets, including shares, could lose some of their lure.

The Fed suspense provided occasion for continued wide-spectrum profit taking, also in view of Hungaryʼs economic growth which ought to slow this year from last year, even according to the best of forecasts.

Slowing construction volumes growth data from January on Monday combined with falling capital account surplus figures due to less net transfers from the EU also in January, published be the National Bank of Hungary (NBH) on Tuesday, confirmed the chance of slower GDP growth this year.

Mood remained subdued despite an expected rate cut by the NBH almost taken for granted as soon as next Tuesday regardless of the Fedʼs new guidance with export-enhancing effect on the Hungarian currency, and also despite new calculations that a weaker forint should increase the impact of EU funds when disbursed in the local currency.

OTP fell 0.28% to HUF 4,667 on turnover of HUF 5.94 bln from a HUF 7.77 bln session total, a tenth short of the daily average this year.

MOL dropped 1.01% to HUF 11,800 on turnover of HUF 989 mln.

Magyar Telekom lost 1.03% to HUF 383 on turnover of HUF 245 mln.

Richter retreated 0.39% to HUF 3,825 on turnover of HUF 443 mln.

The bourseʼs mid-cap BUMIX went out 0.26% higher at 1,514.82.

Elsewhere in the region, WIG 20 in Warsaw was up 0.60%, while Pragueʼs PX sank 0.15%. Western Europeʼs major indices were mixed ahead of their close Wednesday with FTSE-100 in London up 1.43%, DAX30 in Frankfurt down 0.54%, and CAC40 in Paris down 0.01%.

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