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BUX down with European peers

The Budapest Stock Exchangeʼs main BUX index finished down 0.53% at 23,234.03 Monday, after rising 1.96% Friday. It is down 2.87% from year-end, after surging 43.81% last year. Over last week, it lost 2.20% after shedding 0.31% in the previous week.

OTP = -1.22%

MOL = +1.10%

MTEL = +0.25%

RICHTER = -1.62%

As two days of short covering in oil markets fizzled out, and European markets backed down, the Budapest parquet followed suit.

Sentiment is to sell out on any stock market rebound, such as the one on Friday, as analysts do not yet see the bottom of either the slowing in emerging economies, nor of the fall in stock market prices, in spite of hopes for new stimulus raised by the European Central Bank last Thursday. Any such further easing is at least more than a month off, while there is no sign yet that deteriorating US data had induced rethinking of the US Fedʼs tightening bias.

On the domestic turf, a second reading of Novemberʼs retail sales data confirmed a slow-down of annual growth in calendar-adjusted terms, and a monthly fall in unadjusted terms.

Sentiment is also dented by the Hungarian governmentʼs plan to modify the constitution in order to enable it to exercise emergency authority in case of terror threat as well. This would give extra powers to the government based on preconditions that, by their nature, could not always be verifiable, and could be withheld by the government itself, analysts say.

OTP lost 1.12% to HUF 5,753 on turnover of HUF 6.04 bln from a preliminary HUF 10.41 bln session total, in line with the daily average of the last 52 weeks.

MOL increased 1.10% to HUF 13,725 on turnover of HUF 1.36 bln.

Magyar Telekom gained 0.25% to HUF 397 on turnover of HUF 80 mln.

Richter retreated 1.62% to HUF 5,410 on turnover of HUF 2.74 bln.

The bourseʼs mid-cap BUMIX went out 0.46% lower at 1,641.22.

Elsewhere in the region, WIG 20 in Warsaw was down 0.16%, while Pragueʼs PX shed 0.33%.

Western Europeʼs major indices were all down ahead of their close on Monday, FTSE100 in London 0.81%, DAX30 in Frankfurt 0.83%, and CAC40 in Paris 1.07%.