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MOL downgraded by Erste

According to Napi Gazdaság, Hungarian oil giant MOL Rt has been downgraded by the investment analyst of Erste Bank Rt while other regional players, OMV and PKN Orlen have been valued upwards and recommended for accumulation. The analysis reports MOL overvalued and proposes the company for sale. It also emphasises that the liquidation of the gas branch has not yet been realised and is unlikely to end soon. The branch has always been problematic due to governments willing to keep gas prices low while world gas prices rising. On the other hand, Erste has a high opinion of the company's oil branch, expects future gains and a Ft 2,900 per share price for 2005. The report has not had an effect on the market yet, moreover MOL shares went up by Ft 700/per share just yesterday. (NG 11) A.H.