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BUX follows global markets down

Telco

The Budapest Stock Exchangeʼs main BUX index finished down 1.20% at 23,632.57 Monday, after loosing 0.18% last week Wednesday, the last trading day before New Year, distancing some more from its latest four-and-half-year high last week Tuesday. It ended the past year 43.81% higher, after losing 10.40% in 2014.

The Budapest parquet succumbed to bad tidings from Western markets after tension between Iran and Saudi Arabia, and dismal December Chinese and US manufacturing data knocked global indices sharply down, exacerbated by fears that the US Fed does not seem to think over its aim to continue tightening this year.

The BUXʼs loss, however, was limited by FHB bank that rose on a capital increase with a private placement of new shares late last year.

Hungaryʼs manufacturing industry snapped a 28-month spell of expansion in December as its seasonally-adjusted Purchasing Managers Index (PMI) fell to 49.1 points, the lowest since July 2013, on production and new orders, from 55.8 in November.

But Citigroup said December Hungarian PMI was not a cause for worry as "this PMI release is typically volatile and Decemberʼs drop is regularly followed by a rebound in January, reflecting a seasonal halt at major car producers." Given strong PMI readings in September and November and sustained expansion in German PMI in December, Citi expects Hungarian industrial output to continue to grow in line with external demand this year.

Hungarian drugmaker Richter announced on Monday that the European Medicines Agency (EMA) has accepted its regulatory submission for the proposed biosimilar to a product of Eli Lilly.

OTP lost 1.02% to HUF 5,939 on turnover of HUF 2.38 bln from a preliminary HUF 4.93 bln session total, little more than half of last yearʼs daily average. OTP rose 57.44% last year.

MOL fell 1.44% to HUF 14,050 on turnover of HUF 822 mln, after gaining 23.47% last year.

Magyar Telekom ended flat at HUF 406 on turnover of HUF 157 mln, after rising 20.12% last year.

Richter retreated 1.78% to HUF 5,400 on turnover of HUF 1.19 bln, after soaring 55.53% over last year.

FHB won 3.86% on turnover of 63 mln.

The bourseʼs mid-cap BUMIX went out 0.27% lower at 1,628.50, after garnering 12.99% last year.

Elsewhere in the region, WIG 20 in Warsaw was down 2.94%, while Pragueʼs PX decreased 1.89%.

Western Europeʼs major indices were all down of their close on Monday, FTSE100 in London 2.45%, DAX30 in Frankfurt 4.43%, and CAC40 in Paris 3.76%.

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