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BUX drops 1.8% as EC criticism of Hungary’s deficit-reduction measures magnifies losses

The Budapest Stock Exchange’s blue-chip BUX index closed Wednesday trade down 1.81% to 16,759.52 as the European Commission’s midday announcement that it believes Hungary has failed to take sustainable steps to reduce the country’s deficit compounded early losses stemming from rising risk-aversion and a negative correction of gains posted in the first two sessions of the week.

The BUX lost 309.17 points on a composite exchange turnover of HUF 12.89bn, fluctuating in a 2.24% range between an intra-session high of 17,123.07 at 9:15 a.m. and an intra-session low of 16,739.43 at 4:10 p.m. The BUX dropped over 100 points immediately following the European Commission’s 12:20 p.m. statement that it had "concluded that Hungary has not made sufficient progress towards a timely and sustainable correction of its excessive deficit."

The BUX gained over 960 points in the BSE’s first two sessions of the week.

BSE blue-chips stood as follows at Wednesday’s closing bell:

Oil and gas company MOL lost 2.84% to HUF 16,905 on a turnover of HUF 2.37bn;

OTP Bank declined 2.17% to HUF 3,150 on an exchange-high a turnover of HUF 9.55bn, or just under 75% of the BSE’s total Wednesday trade;

Drug company Richter lost 1.79% to HUF 35,160 on a turnover of HUF 189m;

Magyar Telekom gained 0.19% to HUF 516 on a turnover of HUF 588m.

The BSE Big Four generated 98.5% of the exchange’s composite Wednesday turnover.