BUX further up
The Budapest Stock Exchangeʼs main BUX index finished up 1.20% at 21,903.37 Tuesday after rising 1.48% Monday. It is up 31.68% from year-end, after losing 10.40% last year.
The Budapest parquet continued to rise with European peers for a second day. Back in viewing distance from its latest nearly four-year closing high at 22,230.10 last week Monday, the BUX was also propped up by recent upbeat local and regional economic data, another base rate cut by the National Bank of Hungary (MNB) arriving on schedule in line with consensus and complete with the bankʼs hint at more to come, personal income tax cut plans of the government for next year numerically confirmed by the National Economy minister on Tuesday, and heavy inflow of foreign funds.
Although SocGen compared Hungaryʼs economic upturn to "a dead cat bouncing" in a note last week, sheer numbers mesmerise yield-hunting investors while the ECBʼs QE drives secure fixed income yields towards nil in the euro area.
The BUX only pared gains after the National Economy minister also said that, as opposed to government ideas for up to 2018 he himself aired a month ago, the government as yet planned no change in the corporate tax rate or the special sectoral taxes in next yearʼs budget other than the already scheduled financial sector tax cut. This hit Magyar Telekom and slowed down MOL by the end of trade
Meanwhile, a new wave of attacks on Western supermarkets started on Tuesday with Hungaryʼs competition watchdog launching price-fixing probes against Tesco, Auchan, Spar, Metro, and DM-Drogerie Markt.
OTP gained 2.97% to HUF 5,787 on turnover of HUF 5.72 bln from a HUF 11.61 bln session total, 15% above the daily average this year.
MOL rose 0.07% to HUF 14,910 on turnover of HUF 3.20 bln.
Magyar Telekom dove 4.76% to HUF 400 on turnover of HUF 1.05 bln.
Richter advanced 3.18% to HUF 4,277 on turnover of HUF 1.48 bln.
The bourseʼs mid-cap BUMIX went out 0.28% higher at 1,591.25.
Elsewhere in the region, WIG 20 in Warsaw was up 0.17%, while Pragueʼs PX garnered 0.51%. Western Europeʼs major indices were all up ahead of their close Tuesday, FTSE-100 in London 0.22%, DAX30 in Frankfurt 0.63%, and CAC40 in Paris 0.26%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.