BUX rises further on rate cut, global mood
The Budapest Stock Exchangeʼs main BUX index finished up 1.06% at 19,533.20 on Tuesday, rising further from a fourteen-month peak reached on Monday. The index was helped by generally positive sentiment elsewhere in Europe as well as by the MNBʼs already expected rate cut and by the announced more flexible approach towards the inflation target in future. The Budapest parquet rose for a fourth day in a row, with all blue chips recording gains.
The euphory of Fridayʼs surprise one-notch upgrade of Hungaryʼs credit rating by S&P, to still one notch below investment grade, will probably slowly fade. But a 15bp rate cut by the National Bank of Hungary (MNB), slightly more than expected, firmed the Hungarian forint to a more than two-year low, as it was coupled by the promise of further cuts, and the announcement of a more flexible approach to the midterm inflation target, designating a +/-1 percentage-point around the unchanged 3% midterm target.
OTP gained again only marginally, rising 0.08% to HUF 5,105 on turnover of HUF 10.48 bln from a HUF 13.93 bln session total, which was more than HUF 5 bln up from last yearʼs average.
MOL rose 2.51% to HUF 12,250 on turnover of HUF 1.61 bln.
Magyar Telekom gained 0.26% to HUF 387 on turnover of HUF 394 mln.
Richter rose 1.57% to HUF 4,009 on turnover of HUF 1 bln after its board announced a dividend proposal of HUF 33 per share, down from HUF 57 last year, but in line with its practice of paying one-fourth of after-tax profit to shareholders.
The bourseʼs mid-cap BUMIX ended the day 0.23% higher at 1,532.07.
Elsewhere in the region, WIG 20 in Warsaw was down a slight 0.09%, while Pragueʼs PX rose 0.34%. Of Western Europeʼs major indices the FTSE-100 in London up just 0.01%, DAX30 in Frankfurt rose 0.92%, and CAC40 in Paris up 0.67% ahead of their Tuesday close.
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