BUX in the red ahead of EU summit

The Budapest Stock Exchange's main BUX index opened down 0.31% at 17,724.81 on Wednesday as markets has been uncertain about the outcome of the evening EU summit.

OTP Bank opened unchanged at HUF 3,560, oil and gas company MOL started the day 0.43% lower at HUF 17,525, drug maker Richter fell 0.78% to HUF 35,700 and Magyar Telekom dropped 0.19% to HUF 516.

Analysts interviewed by MTI said expected nervous trading on the bourse ahead of the EU summit.

Zsolt Balásy of Concorde Értékpapír said it was difficult to perceive a rise when frightened sellers appear on the least bad sign, noting the disappointing close on US markets. The S&P500 is, however, above the last quarter's average, and raw materials were up which is a traditionally good sign for emerging markets.

Zoltán Varga of Questor said markets will keep an eye on any news on the upcoming EU meeting. He noted that MOL broke the 17,500 resistance level on Tuesday and, if not falling again below, could rise until 18,200. OTP is moving in a narrow range, and bigger moves can be expected if it breaks out either way of the 3,350-3,650 range.

The BUX finished Tuesday up 0.41% at 17,838.28 on turnover of HUF 15.8bn.