The Budapest bourse rose for a third consecutive day, on cue from Western markets. The late slowdown of euro zone indices hardly reined in the BUX which closes earlier then European peers.
Fundamentals are not driving the rally either in the euro zone or Hungary, but a growing certainty in loose monetary policies to last longer than previously thought help it continue. Given the low bond yields, there are few investment alternatives to equities, although intermittent profit taking can not be excluded, analysts and investors say.
In Hungary, industrial production fell in August for a second month in monthly comparison, and the fall quickened, official statistics out on Wednesday showed. In annual terms, production grew faster after a sharp deceleration in July, but remained short of both market projections and the year-to-date average.
The uptake of the Hungarian central bankʼs cheap loan programme for SMEs sharply slowed in September, confirming banksʼ view that what hinders loan turnover is not their alleged reluctance to lend, but tepid demand in the real economy. National Bank of Hungary (MNB) figures published on Wednesday showed that commercial banksʼ new disbursements net of repayment under the MNBʼs Funding for Growth Scheme fell in September from both August and July to HUF 21.8 bln from HUF 37.6 bln and HUF 33.4 bln, respectively.
Winner of the day, oil company MOL, rose in range with the European energy index that garnered more than 2.5% on stronger metals and rising oil prices, which broke out of a month-long inertia after forecasts suggested the global glut should ease, and international crude prices firmed fast.
OTP won 0.75% to HUF 5,390 on turnover of HUF 2.03 bln from a preliminary HUF 8.02 bln session total, about a tenth short of the daily average this year.
MOL gained 2.08% to HUF 13,020 on turnover of HUF 3.58 bln.
Magyar Telekom rose 0.25 % to HUF 397 on turnover of HUF 353m.
Richter advanced 0.89% to HUF 4,540 on turnover of HUF 2.01 bln.
The bourseʼs mid-cap BUMIX went out 0.13% lower at 1,612.61.
Elsewhere in the region, WIG 20 in Warsaw was up 0.36%, while Pragueʼs PX garnered 0.68%.
Western Europeʼs major indices were all up ahead of their close on Wednesday, FTSE100 in London 0.08%, DAX30 in Frankfurt 0.69%, and CAC40 in Paris 0.12%.
