BUX up a bit after ECB, Magyar Telekom shines

The Budapest main index rose mainly on Magyar Telekom, but quickly pared gains late in the afternoon to close well short of its fifth four-and-a-half-year high within two weeks on Tuesday, which it scaled early in the day.

Magyar Telekom soared in rarely seen large volumes on an interview in weekly Figyelo with its CEO who confirmed there were more and more signs that the special sectoral taxes could be reduced as a result of a "healthy dialogue" between the operators and the state. He also welcomed the lowering of VAT on internet services to 18% from 27%.

While euro zone indices fell like stone after ECBʼs new stimulus came in weaker than expected, the BUX outperformed also on perceptions that any level of more ECB easing is a bonus for markets in emerging Europe, although the dive of OTP Bank reflected a degree of disappointment in Budapest as well.

But oil company MOL rose as the dollarʼs fall in the wake of the ECB decision supported Brent prices.

The dayʼs domestic data were mixed. Hungaryʼs export growth accelerated in monthly comparison in September, while the annual growth remained low compared to data in the first half of this year.

Retail trade growth in Hungary slowed in both monthly and annual comparisons in October as the "whitening" impact of connecting shop tills to the tax authority seems to fizzle out.

OTP lost 1.75% to HUF 6,050 on turnover of HUF 2.54 bln from a preliminary HUF 7.52 bln session total, about 17% short of daily average this year.

MOL rose 1.11% to HUF 13,700 on turnover of HUF 1.22 bln.

Magyar Telekom surged 1.98% to HUF 412 on turnover of HUF 1.21 bln.

Richter advanced 0.46% to HUF 5,425 on turnover of HUF 2.58 bln.

The bourseʼs mid-cap BUMIX went out 0.12% lower at 1,618.97.

Elsewhere in the region, WIG 20 in Warsaw was down 0.89%, while Pragueʼs PX dropped 0.85%.

Western Europeʼs major indices were all down ahead of their close on Thursday, FTSE100 in London 1.91%, DAX30 in Frankfurt 2.77%, and CAC40 in Paris 2.99%.