Report: Panic reaches Budapest bourse
The main index of the Budapest Stock Exchange (BSE) BUX index was down 1.74% at 21,734.90 about five minutes after the opening bell today, according to Hungarian news agency MTI, and fell a further 5%, Hungarian online portal investor.hu said today.
The slowing of Chinese economic growth generated panic on western stock exchanges and low oil prices also hurt index prices, investor.hu said. While bourses around the world were falling, the Hungarian bourse was closed due to a national holiday on Thursday and Friday.
However, despite the initial drop, share prices were broadly steady, Hungarian news agency MTI reported shortly after noon. OTP Bank was down 4.38% at HUF 5,388. Oil and gas company MOL lost 6.59% to HUF 13,540. Drugmaker Richterʼs share price dropped 3.44% to HUF 4,205. Magyar Telekom was down 2.52% at HUF 387.
Share turnover was high, coming to HUF 11.37 bln for the morning, MTI said, adding that major western European share indices were down at midday, again falling around 2.5%.
Citing analyst András Nagy of Erste Investment, MTI reported that a significant drop in the BUX is expected due to a negative sentiment on international markets stemming from heavy selling last week. Weak macroeconomic data and falling share prices in China have riled investors abroad, MTI added.
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