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BUX basket to add CIG Pannónia and Orco, drop TVK on April 1

Insurance company CIG Pannónia and real-estate company Orco will be included in the Budapest Stock Exchange's blue-chip BUX basket on April 1, while chemical company TVK will be dropped from the index on that date after failing to meet the criteria for BUX membership for the second time, the Budapest Stock Exchange (BSE) reported.

The addition of CIG Pannónia and Orco and exclusion of TVK will raise the total number of issuers in the BUX basket to 13. Remaining in the BUX basket following the April 1 changes will be index heavyweights OTP Bank, oil and gas company MOL, drug company Richter and Magyar Telekom and index middle-cap issuers energy-efficiency company E-Star Alternatív (known as RFV until earlier this month), IT company econet.hu, drug company Egis, FHB, asset-management company Fotex Holding, energy company PannErgy and automotive company Rába. The BSE noted that the latter company failed for the first time to satisfy the criteria for membership in the BUX basket, though would remain in the index if it meets the conditions during the exchange's next review of the basket as stipulated in BSE regulations.

The BSE also announced that CIG Pannónia and asset-management company Appeninn would join the exchange's the small- and middle-cap BUMIX index on April 1, while the Danubius Hotels and electricity company ÉMÁSz would be dropped from the BUMIX on that date after failing to meet the criteria for membership in the basket for the third consecutive review.

The number of issuers in the BUMIX index will stay at 18 following the addition of CIG Pannónia and Appeninn and exclusion of Danubius Hotels and ÉMÁSz. Remaining in the BUMIX following the April 1 changes will be currently co-listed BUX issuers E-Star Alternative, econet.hu, Egis, FHB Mortgage Bank, Fotex, PannErgy, Rába and TVK as well as printing company Állami Nyomda, asset-management company Genesis Energy Investment, gas company KEG Central European LPG Terminal, veterinary-drug company Phylaxia 1912 Holding, IT company Synergon, spirits company Zwack Unicum, IT company Freesoft and dietary-supplement company NUTEX (known as Humet until early February). The BSE noted that the latter two companies and TVK failed to meet the criteria for membership in the BUMIX for the third-consecutive review, though would remain in basket in order to insure the stability of the index.

The BSE conducts biannual spring and fall reviews of BUX and BUMIX members to determine if they meet at least five of the exchange's seven turnover, net-asset, capitalization, cross-trading and free-float criteria for membership in the indices. Index issuers that fail to satisfy the conditions for two consecutive reviews are excluded from the baskets unless their membership is required to maintain the stability of the index.

The BSE implements any changes to the indices on April 1 and October 1 of the year