BUX soars on Fed relief
The Budapest Stock Exchangeʼs main BUX index finished up 2.30% at 20,462.45 Tuesday, the highest since August 3, 2011, after rising 1.77% last Thursday, the last trading day before the Easter recess. It is up 23.02% from year-end, after losing 10.40% last year.
Supported by Western markets relieved by a possible postponement of the US rate hike cycle, and boosted by improving economic outlook, Greek promises to stick to debt service schedules, and expectations for a European acquisition spree by US companies, the Budapest parquet also soared.
Locally, analystsʼ views on Hungarian industrial production growth slowing but remaining robust, and on deflation bottoming out contributed to optimism.
MOL was specially supported by a recommendation from HSBC that raised the fair value estimate to HUF 17,500.
Following signs that Russia is patching up some differences with Ukraine, especially by agreeing to supply it gas cheaper than reverse-flow Western suppliers do, the Russian rouble continued to strengthen, helping Richter and OTP.
OTP gained 0.94% to HUF 5,350 on turnover of HUF 4.39 bln from a HUF 11.78 bln session total, a quarter above the daily average this year.
MOL surged 4.32% to HUF 13,290, the highest since May 16, 2014, on turnover of HUF 5.61 bln.
Magyar Telekom won 1.45% to HUF 419, the highest since April 30, 2013, on turnover of HUF 422 mln.
Richter advanced 2.85% to HUF 4,010 on turnover of HUF 1.16 bln.
The bourseʼs mid-cap BUMIX went out 0.77% higher at 1,550.21.
Elsewhere in the region, WIG 20 in Warsaw was up 0.84%, while Pragueʼs PX gathered 0.17%. Western Europeʼs major indices were all up ahead of their close Tuesday, FTSE-100 in London 1.67%, DAX30 in Frankfurt 1.04%, and CAC40 in Paris 1.35%.
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