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BUX misses European rally

Telco

The Budapest Stock Exchangeʼs main BUX index finished down 0.16% at 21,367.32 Wednesday after falling 1.62% Tuesday. It is up 28.46% from year-end, after losing 10.40% last year.

The Budapest parquet missed a mild European relief rally as the Greek crisis has again been put on the backburner for a few days. Until an EU summit on Sunday Greece is expected to come up with an economic reform and debt service plan its euro zone peers can take seriously in order to keep the country in the monetary union.

But new fears emerge these days as analysts point to a severe rout in Chinese stock markets lately, highlighted with a more than 6% plunge there on Wednesday which, through emerging market sentiment and possible economic repercussions including low liquidity, could do more harm to the BUX than any fallout from a potential "Grexit".

Fresh data on accelerating inflation in Hungary in June increased pessimism for household consumption in light of previous retail sales volumes data which showed food and fuel trade growth have slowed sharply already in May when inflation reappeared after eight months of deflation.

Also, fresh data on the plodding progress of the National Bank of Hungaryʼs Funding for Growth Scheme (FGS) aimed at SMEs reminded investors of the continuing credit crunch in market based lending.

OTP lost 1.61% to HUF 5,377 on turnover of HUF 4.34 bln from a HUF 6.59 bln session total, two-thirds of the daily average this year.

MOL corrected up 0.91% to HUF 14,400 on turnover of HUF 1.44 bln.

Magyar Telekom dropped 0.25% to HUF 396 on turnover of HUF 132m.

Richter advanced 0.64% to HUF 4,071 on turnover of HUF 553m.

The bourseʼs mid-cap BUMIX went out 0.39% higher at 1,643.45.

Elsewhere in the region, WIG 20 in Warsaw was down 0.05%, while Pragueʼs PX lost 0.22%.

Western Europeʼs major indices were all up ahead of their close on Wednesday, FTSE100 in London 0.85%, DAX30 in Frankfurt 0.82%, and CAC40 in Paris 0.90%.


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