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BUX pares gains after US data

Telco

The Budapest Stock Exchangeʼs main BUX index finished up 0.32% at 22,492.78 Friday after falling 1.58% Thursday. It is up 35.22% from year-end, after losing 10.40% last year.

Correcting some of Thursdayʼs plunge, the Budapest parquet pared gains after US July non-farm payrolls showed slowing, but still strong growth, and a restart of minor wage rises, broadly confirming expectations for a September policy rate hike by the Fed.

But analysts reckon that with strong ties to a euro zone pampered by ECBʼs quantitative easing, Central Europe is better positioned to whether the US rate impact than other emerging economies which suffer the pressure of weak row material prices.

In domestic news, the Hungarian government and the European commission have agreed to unblock HUF 4 bln from interrupted EU funding for the fourth priority Economic Development Operational Program (GOP), the money has already been disbursed, and progress has also been made towards unblocking a further HUF 140 bln worth of funding suspended in April due to disputes between the parties.

But official Hungarian industrial data came in less than encouraging on Friday.

Annual industrial output growth sped up in June to 11.0%, way above market consensus, from 1.6% in May, but workday-adjusted expansion slowed, and growth in monthly comparison remained tepid. Analysts added that the jump in the unadjusted annual figure might have resulted from low base last year. That said, Hungaryʼs PMI published earlier in the week suggested even more difficulties lying ahead as manufacturing stopped expanding in July.

Fridayʼs data on a surprise fall in German industrial output and imports in June also dented sentiment as Germany is Hungaryʼs largest trading partner.

OTP won 0.69% to HUF 5,729 on turnover of HUF 1.48 bln from a HUF 3.28 bln session total, about a third of the daily average this year.

MOL lost 0.27% to HUF 14,645 on turnover of HUF 831 mln.

Magyar Telekom shed 0.73% to HUF 409 on turnover of HUF 143 mln.

Richter advanced 1.02% to HUF 4,450 on turnover of HUF 776 mln.

The bourseʼs mid-cap BUMIX went out 0.67% higher at 1,696.06.

Over the week, the BUX was down 0.43% after rising 0.92% the previous week.

OTP eased 0.28% after shedding 0.95% last week.

MOL decreased 0.78% after improving 1.58% the preceding week.

Magyar Telekom rose 0.74% after losing 0.73% last week.

Richter dropped 1.02% after surging 4.10% over the previous week.

The BUMIX gained 1.01% after dipping 0.71% over last week.

Elsewhere in the region, WIG 20 in Warsaw was up 0.25%, while Pragueʼs PX slid 0.14%.

Western Europeʼs major indices were all down ahead of their close on Friday, FTSE100 in London 0.23%, DAX30 in Frankfurt 0.72%, and CAC40 in Paris 0.59%.


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