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BUX up on strong OTP

Telco

The Budapest Stock Exchangeʼs main BUX index finished up 1.68% at 24,302.45 Tuesday after losing 0.23% on Monday. The BUX index increased steadily throughout the whole day on the back of positive sentiment in foreign markets and the good performance of OTP and MOL.

OTP locked in significant gains as its share price broke through a technical resistance point and brokerage company Wood raised its target price for the stock to HUF 6,954 on a recommendation to buy.

Investorʼs interest towards OTP was not dampened despite the news that Hungaryʼs Competition Office (GVH) fined the Hungarian Banking Association HUF 4 bln for cartel activity. GVH does not attribute direct responsibility to OTP but as a member of the Association it will also have to pay higher membership fees or submit special payment contribution for settling the GVH fine.

The news that the National Bank of Hungary will phase out its two-week deposit facility, earlier its main instrument for sterilizing banking sector liquidity, by the end of April 2016 had little effect on financial investors.

MOL also performed well on Tuesday unperturbed by volatility in international oil prices. Oil prices rose in the first part of the day, before tumbling in the afternoon. The Brent crude lost 1.43% and its price fell to USD 31.10 per barrel while the WTI crude lost 2.13% to USD 30.74 per barrel.

OTP gained 3.56% to HUF 6,084 on turnover of HUF 6.91 bln from a HUF 10.54 bln session total.

MOL was up 2.57% at HUF 13,950 on turnover of HUF 1.58 bln.

Magyar Telekom rose 0.74% to HUF 408 on turnover of HUF 181m.

Richterʼs share price was down 0.51% at HUF 5,810 on turnover of HUF 1.76 bln.

The bourseʼs mid-cap BUMIX finished 0.09% higher at 1,644.78.

Elsewhere in the region, the WIG-20 in Warsaw was up 2.74%, while Pragueʼs PX gained 0.11%.

Western Europeʼs major indices were up ahead of the end of trading. The FTSE100 in London gained 1.19%, the DAX30 in Frankfurt was up by 2.00%, and the CAC40 in Paris was up 1.89%.

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