BUX up on ECB stimulus talk
The Budapest Stock Exchange's main BUX index finished up 0.91% at 17,493.35 Tuesday, after plunging 1.77% Monday. It is down 5.77% from the end of last year, after it rose 2.15% in 2013. An upturn in Western markets helped the Budapest parquet to a rise, too, but it remained muted in low volumes.
In line with euro area peers, OTP rose after Reuters reported that the ECB was mulling the purchase of corporate debt in addition to its programme, started Monday, to buy bonds of credit institutions.
However, OTP's rise was capped by news that banks would probably get no rebate from the special bank tax next year.
The National Economy Minister divulged some details of next year's tax plans Tuesday.
These also include an extension of the telecommunications tax to internet services. This weighed on Magyar Telekom after investors have long hoped that something positive would result from its partnership agreement signed with the government last February, complete with a passage on the government's "intention" to revise taxation rules and the sector-specific regulatory environment to support network development.
The government is to submit next year's budget to parliament next Tuesday, a government spokesperson said.
The message of day's official wage and employment statistics for the outlook on private consumption was mixed. While earnings and payroll growth accelerated in the private sector in August, both slowed in the economy as a whole when calculated without government sponsored fostered workers. Average wages growth slowed even sharper when calculated with fostered workers.
OTP climbed 1.50% to HUF 4,059 on turnover of HUF 2.17 bln from a HUF 4.57 bln session total, little more than half the daily average this year. MOL gained 2.22% to HUF 11,760 on turnover of HUF 867 mln. Magyar Telekom dropped 0.85% to HUF 348 on turnover of HUF 714 mln. Richter retreated 0.26% to HUF 3,840 on turnover of HUF 482 mln. The bourse's mid-cap BUMIX went out 0.32% lower at 1,460,95.
Elsewhere in the region, Warsaw's WIG20 was up 1.61%, while Prague's PX rose 1.42%. Western Europe's major indices were all up ahead of their close Tuesday, FTSE-100 in London 1.49c, DAX30 in Frankfurt 1.73%, and CAC40 in Paris 2.01%.
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