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BUX up again in final trades

Telco

The Budapest Stock Exchangeʼs main BUX index finished up 0.21% at 20,848.31, another nearly four-day closing high, Thursday after rising 1.67% Wednesday. It is up 25.34% from year-end, after losing 10.40% last year.

After languishing in the red for most of the day, the Budapest parquet could not resist tailwinds blowing from euro area bourses in final trades of the day. The governmentʼs willingness to bow to EU pressure and reduce the advertisement tax also improved sentiment.

A rarely-seen 5.84% rise of the BUX in the previous three days warranted the initial negative adjustment.

Second thoughts on a slew of generally strong, but mixed local data published on Wednesday also contributed to the pause, especially those on slowing growth in retail trade and workday-adjusted industrial production.

Official talk on increasing the compensation capacity of the investors insurance pool, auguring additional obligations to contribute by banks, following bankruptcy procedures against three local brokerages and fund managers also weighed, because the measure could further limit the financial sectorʼs profitability and market-based lending capability. But OTP also rose in the final minutes.

Only MOL spent almost the whole day in the black, closing at a new more than one-year high, on top of a 14.69% surge in the previous four days on analystsʼ recommendations, improving profit outlook and first inter-governmental talks on the possible construction of a "Turkish Stream" gas pipeline.

OTP won 0.58% to HUF 5,370 on turnover of HUF 2.93 bln from a HUF 7.74 bln session total, a fifth short of the daily average this year.

MOL rose 0.14% to HUF 13,920, the highest close since February 11, 2014, on turnover of HUF 2.95 bln.

Magyar Telekom ended flat at HUF 423 which was a two-year closing high on Wednesday, on turnover of HUF 489 mln.

Richter retreated 0.07% from an almost seven-month closing high on Wednesday to HUF 4,080 on turnover of HUF 1.29 bln.

The bourseʼs mid-cap BUMIX went out 0.24% lower at 1,556.64.

Elsewhere in the region, WIG 20 in Warsaw was up 0.70%, while Pragueʼs PX gathered 0.55%. Western Europeʼs major indices were all up ahead of their close Thursday, FTSE-100 in London 0.96%, DAX30 in Frankfurt 0.88%, and CAC40 in Paris 1.15%.

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