Substantial losses from BSE heavyweight issuers OTP, Magyar Telekom, MOL and Richter dropped the Budapest Stock Exchange’s blue-chip BUX index to a Wednesday decline of 3.55% to 11,782.97.
The BUX closed down 433.31 points on a light composite exchange turnover of HUF 15.51 billion (€57.94 million), falling along with its blue-chip peers throughout Europe as investors continued to worry about the prospect of a deep global recession. The BUX fluctuated in a 597.83-point range between an intra-session high of 12,373.27 shortly after morning bell an intra-session low of 11,775.44 just before 3 p.m.
The mid-cap BUMIX index also declined on Wednesday, losing 50.08 points, or 3.20%, to 1,513.41. BSE blue-chips, which account for over 90% of the BUX index’s point value, stood as follows at Wednesday’s closing bell:
OTP Bank lost 4.53% to HUF 2,530 on an exchange-high turnover of HUF 8.87 billion;
Magyar Telekom declined 4.20% to HUF 570 on a turnover of HUF 1.73 billion;
Oil and natural gas company MOL lost 3.56% to HUF 9,750 on a turnover of HUF 3.11 billion;
Drug company Richter declined 1.89% to HUF 26,000 on a turnover of HUF 1.39 billion.
The BSE Big Four generated 97.36% of the exchange’s composite Wednesday turnover.
Krisztian Kovács of Concorde Securities commented that the bearish trend continued at global stock exchanges on Wednesday, adding that the BUX outperformed other central and eastern European blue-chip indices on Wednesday, while the forint weakened to a greater degree than its regional peer currencies. Kovács remarked that there was no concrete reason for Wednesday’s global stock-market decline, speculating that investors may have truly begun to build declining corporate profits into share values. The Concorde Securities stock analyst said that global market-sentiment is unlikely to improve for quite some time.
Other major central and eastern European blue-chip stock indices also closed lower on Wednesday, with Prague’s PX-50 losing 4.73% to 825.50 and Warsaw’s WIG-20 declining 4.93% to 1,757.49. (MTI-Eco)