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BUX finishes at dayʼs high

Telco

The Budapest Stock Exchangeʼs main BUX index finished up 1.29% at 21,903.13 Tuesday after falling 0.84% Monday. It is up 31.68% from year-end, after losing 10.40% last year.

Amid resignation about Greeceʼs fate with insolvency and even "Grexit" broadly priced in, a situation where bad Greek news can not pressure relatively unrelated markets any more, the Budapest parquet more than made up for Mondayʼs fall, although in low volume trade.

It even ended at the dayʼs high after news came of an u%oming Eurogroup televoting on Greeceʼs request for a bridgeover European Stability System credit line.

Analysts all over Europe point to Europeʼs improved ability to cope with financial contagion since the height of the euro zone debt crisis in 2011, and to Hungaryʼs strong financial position and almost non-existent direct economic or financial links with Greece. Hungary being not a member of the euro zone either, some analysts risk terming the Budapest bourse as a temporary safe heaven for the braver kind of investors while the local currency continued to gain back lost traction for a second day.

However, the dayʼs local news limited the upside of BUX.

Industrial producer prices in Hungary renewed rising last month after four months of deflation, with export prices rising above the average on a weak forint, but domestic prices still fell.

Market based lending remained moribund in May, with corporate lending stock of Hungarian banks rising only because the easing forint raised the value of forex loans calculated in the local currency, while on a transactions basis Hungarian companies were net re-payers.

OTP won 1.27% to HUF 5,600 on turnover of HUF 4.68 bln from a HUF 7.81 bln session total, about a quarter short of the daily average this year.

MOL rose 1.97% to HUF 14,480 on turnover of HUF 918 mln.

Magyar Telekom ended flat at HUF 395 on turnover of HUF 410 mln.

Richter advanced 1.26% to HUF 4,250 on turnover of HUF 1.78 bln.

The bourseʼs mid-cap BUMIX went out 0.66% higher at 1,645.15.

Elsewhere in the region, WIG 20 in Warsaw was up 1.16%, while Pragueʼs PX corrected up 0.92%.

Western Europeʼs major indices, swiftly paring losses, were still all down ahead of their close Tuesday, FTSE100 in London 0.81%, DAX30 in Frankfurt 0.16%, and CAC40 in Paris 0.45%.

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