BUX up on European rebound

Telco

The Budapest Stock Exchangeʼs main BUX index finished up 1.04% at 22,381.97 Tuesday after falling equally 1.04 Monday. It is up 34.56% from year-end, after losing 10.40% last year. With local impetus lacking in the middle of the summer holiday season, the Budapest bourse faithfully followed European peers, this time up in its roller-coaster pattern of recent days.

European stocks snapped a five-day losing streak on Tuesday, with merger activity and earnings news lifting major markets as investors shrugged off another fall in Chinese stocks and Brent oilʼs slide to a six-month low. Towards close while euro zone bourses pared gains, the BUX outperformed.

The earnings outlook in the euro zone is rising compared to the US and companies are reporting pretty decent numbers, analysts said.

After some delays which were termed technical, talks in Athens started on a new international credit line to Greece, adding to positive sentiment.

All over Europe, Hungary included, a rise of government bond yields signaled the direction of funds, out of sovereigns and into shares.

In the circumstances, a fresh survey from Nielsen showing consumer confidence in Hungary declined slightly in the second quarter, to 55 points from 57 points in the first quarter compared to Nielsenʼs European confidence index that rose by 2 points to 79, only tempered the momentum of BUX.

OTP won 1.05% to HUF 5,790 on turnover of HUF 2.66 bln from a HUF 7.23 bln session total, a quarter short of the daily average this year.

MOL rose 1.33% to HUF 14,510 on turnover of HUF 1.77 bln.

Magyar Telekom lost 0.74% to HUF 401 on turnover of HUF 323m.

Richter advanced 1.72% to HUF 4,375 on turnover of HUF 2.25 bln.

The bourseʼs mid-cap BUMIX went out 0.41% higher at 1,692.27.

Elsewhere in the region, WIG 20 in Warsaw was up 0.34%, while Pragueʼs PX gathered 0.25 %.

Western Europeʼs major indices were all up ahead of their close on Tuesday, FTSE100 in London 0.76%, DAX30 in Frankfurt 0.90%, and CAC40 in Paris 0.71%.


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