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BUX falls in global gloom

Telco

The Budapest Stock Exchangeʼs main BUX index finished down 1.99% at 22,753.21 Wednesday, after ticking up 0.15% Tuesday. It is down 4.88% from year-end, after surging 43.81% last year.

Tumbling oil prices after the International Energy Agency warned that oil markets could "drown in oversupply" in 2016 knocked European indices to 15-month lows on Wednesday, pulling the Budapest parquet down in their wake, while no timely stimulus from the worldʼs leading central banks was in sight for the time being.

Mixed US data on December inflation and weak figures on mortgage applications and building starts and permits also in the US contributed to gloom in the afternoon as the readings showed not everything was all right in the US either, but suggested no change in the Fedʼs tightening bias as yet.

In Budapest, sentiment was also dented by fading chances of further rate cuts by Hungaryʼs central bank.

However, the BUXʼs loss lagged the European average on continuing perceptions that Hungary, as an importer of oil, gas and row materials with relatively few exports to worst-hit emerging economies and China, is fairly well cushioned against world market upheavals.

OTP lost 2.24% to HUF 5,714 on turnover of HUF 8.17 bln from a preliminary HUF 13.62 bln session total, more than a third above the daily average of the last 52 weeks.

MOL fell 2.53% to HUF 12,880 on turnover of HUF 1.66 bln.

Magyar Telekom shed 1.25% to HUF 395 on turnover of HUF 488 mln.

Richter retreated 1.65% to HUF 5,375 on turnover of HUF 3.14 bln.

The bourseʼs mid-cap BUMIX went out 1.02% lower at 1,630.04.

Elsewhere in the region, WIG 20 in Warsaw was down 0.05%, while Pragueʼs PX eased 2.07%.

Western Europeʼs major indices were all down ahead of their close on Wednesday, FTSE100 in London 3.74%, DAX30 in Frankfurt 3.16%, and CAC40 in Paris 3.80%.

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