With OTP underperforming after Hungaryʼs prime minister termed banksʼ contributions mandated by recent legislation to a top-up fund for clients of failed brokerage Quaestor — which would offset the bank levy cut planned for next year — a “bearable burden”, BUX scaled a new nearly four-year high as euro zone markets improved on upbeat German business confidence figures, and yield-hunting funds continued to flow in, chasing MOL and Richter, while the ECBʼs QE makes lower-risk assets less attractive in developed markets.
Oil and gas company MOL gained on news that it had agreed to buy Ithaca Energyʼs Norwegian exploration business from cash-flow, and on international crude prices that hit a nearly four-month peak on Thursday.
A side effect of crude prices, the strengthening of the Russian rouble to more than four-month highs against major currencies and the Hungarian forint, too, continued to boost pharma company Richter with large exposure to Russian markets. Market talk that pharma companies might come first when Hungaryʼs government begins paying off some of the more than HUF 90 bln debt of hospitals to suppliers in the near future also helped.
Investors kept ignoring speed limit caution signs such as Fridayʼs data on slowing annual retail trade growth in Hungary in February, and a fresh warning from the head of the Hungarian Banking Association that the extra burdens on Hungaryʼs banking sector are restricting the sustainable growth of the whole economy.
OTP won 0.48% to HUF 5,848 on turnover of HUF 3.80 bln from a HUF 10.47 bln session total, in line with the daily average this year.
MOL rose 2.16% to HUF 14,900 on turnover of HUF 2.56 bln.
Magyar Telekom ended flat at HUF 410 on turnover of HUF 291m.
Richter advanced 4.07% to HUF 4,600, a second more than 14-month closing high in two days, on turnover of HUF 3.74 bln.
The bourseʼs mid-cap BUMIX went out 0.23% lower at 1,604.25.
The BUX ended the week up 5.13% after rising 0.83% over the previous week.
OTP garnered 4.99% after gaining 1.24% last week,
MOL improved 3.29% after a plus of 3.18% the previous week.
Magyar Telekom eased 1.91% after losing 1.42% last week.
Richter surged 11.92% after dropping 1.20% over the previous week.
The BUMIX rose 1.82% over the week after falling 0.16% last week.
Elsewhere in the region, WIG 20 in Warsaw was down 0.14%, while Pragueʼs PX rose 0.71%. Western Europeʼs major indices were all up ahead of their close Friday, FTSE-100 in London 0.28%, DAX30 in Frankfurt 0.48%, and CAC40 in Paris 0.22%.
