BUX soars on Greece deal outlook

Telco

The Budapest Stock Exchange's main BUX index finished up 3.22% at 17,258.06 Tuesday, the highest since December 12, after rising 1.14% Monday. It is up 3.75% from year-end, after losing 10.40% last year.

Rising along with most European markets, the Budapest parquet piled a rarely seen amount of new gains on Monday's wins on firming hopes that Greece will secure a debt deal with its creditors, sparing the euro area from revisiting the state-debt crisis of the early 2010s.

Like all over Europe, banking shares led the surge in Budapest as well.

On the local front, renewed expectations for further easing by the National Bank of Hungary (MNB) later in the year, fueled by the bank's head on Monday, contributed to optimism, and press reports that based on the results of the German chancellor's snap visit to Hungary on Monday Germany's BMW would set up a plant in Hungary while Mercedes would expand its factory in the country also improved confidence, reflected in rising volumes as well.

MOL on Tuesday suspended a request to call a general meeting of shareholders of Croatia's INA to vote on an extraordinary dividend.

OTP won 4.79% to HUF 3,830, a six-day high, on turnover of HUF 7.20 bln from a HUF 10.35 bln session total, almost 50% more than the daily average this year.

MOL rose 2.46% to HUF 11,670, a nearly one-month high, on turnover of HUF 1.15 bln

Magyar Telekom increased 0.83% to HUF 365, a four-month high, on turnover of HUF 673m.

Richter advanced 3.95% to HUF 3,898, a three-and-a-half-month high, on turnover of HUF 1.17 bln.

The bourse's mid-cap BUMIX went out 0.57% higher at 1,434.97.

Elsewhere in the region, the WIG 20 in Warsaw was down 0.07%, while Prague's PX rose 1.84%. Western Europe's major indices were all up ahead of their close Tuesday, FTSE-100 in London 1.27%, DAX30 in Frankfurt 0.63%, and CAC40 in Paris 1.25%.

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