BUX up on MOL, euro zone data


 The Budapest Stock Exchangeʼs main BUX index finished up 1.01% at 22,781.34 Wednesday after falling 0.28% Tuesday. It is up 36.96% from year-end, after losing 10.40% last year.

The Budapest bourse was boosted by tailwind from Western markets that rose after a fresh survey showed the euro zone produced better-than-expected business growth in July after an agreement was reached on a Greek bailout.

In domestic news, annual retail trade growth in Hungary surprisingly accelerated in June at a pace second only to that in January. Figures for monthly comparison will come later, after retail trade shrank in value terms in May compared to April.

Pent-up demand, more money to spend after the conversion of forex mortgages into the local currency, lower oil prices, and the introduction last year of cash registers connected online to the tax office which "whiten" trade might be factors behind the annual increase, analysts say.

Meanwhile, further dire straits of corporate lending loom. The latest figures from the National Bank of Hungary (MNB) show that in its preferential Funding for Growth programme aimed at SMEs HUF 43.5 bln new contracts were signed and HUF 33,4 bln in new loans were actually disbursed in July, 37% and 36% less, respectively, than a year ago.

Data out last week showed the overall corporate lending stock of Hungarian banks fell in June from the previous month on net repayments.

With inflation set to accelerate and the central bankʼs policy rate expected to stay at the present record low level until at least the second half of next year, negative real rates are at the corner. This might increase companiesʼ appetite for loans even amid volatile domestic consumer demand, but also make banks more scrupulous in lending to them, analysts add.

The dayʼs winner was oil and gas group MOL in huge volumes after it reported an above-consensus surge to a record profit in the second quarter on very strong downstream performance. The company also raised its full-year outlook.

OTP gained 0.89% to HUF 5,801 on turnover of HUF 1.24 bln from a HUF 7.55 bln session total, a fifth short of the daily average this year.

MOL soared 2.15 % to HUF 14,950 on turnover of HUF 4.90 bln.

Magyar Telekom won 0.98% to HUF 413 on turnover of HUF 635m.

Richter ended flat at HUF 4,490 on turnover of HUF 563m.

The bourseʼs mid-cap BUMIX went out 0.21% higher at 1,685.03.

Elsewhere in the region, WIG 20 in Warsaw was up 1.07%, while Pragueʼs PX lost 0.16%.

Western Europeʼs major indices were all up ahead of their close on Wednesday, FTSE100 in London 0.75%, DAX30 in Frankfurt 1.61%, and CAC40 in Paris 1.62%.

Hungary Fuel Prices Fall Below Avg in Neighboring Countries Figures

Hungary Fuel Prices Fall Below Avg in Neighboring Countries

Hungary Treats Smooth EU Transition as Priority, Says Bóka EU

Hungary Treats Smooth EU Transition as Priority, Says Bóka

HU-rizon Program: HUF 8 bln Funding for International Resear... Science

HU-rizon Program: HUF 8 bln Funding for International Resear...

Inspiring Women at the Focus of Gourmet Fest In Budapest

Inspiring Women at the Focus of Gourmet Fest


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.