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Sharp losses from MOL and OTP drive BUX lower

Significant losses from Budapest Stock Excahnge (BSE) heavyweight issuers MOL, OTP and Magyar Telekom dropped the Budapest Stock Exchange's blue-chip BUX index to a sharp decline of 495.13 points to 20,260.25.

The BUX tracked losses from major blue-chip indices throughout Europe, closing the Wednesday session down 2.39% on an active composite exchange turnover of Ft 21.13 billion (€89.19 million), fluctuating in a 575.14-point range between an intra-session high at the index's opening mark of 20,802.25 and an intra-session low of 20,227.11 just before closing bell.

The mid-cap BUMIX index also declined on Wednesday, losing 49.81 points, or 2.16%, to 2,258.62.

Oil and natural gas company MOL declined 5.60% to Ft 16,850 on an exchange-high turnover of Ft 10 billion after Croatia's financial-market regulator Hanfa said that the Hungarian oil and natural gas company had asked for permission to launch a public bid for shares of Croatian peer INA.

OTP lost 2.07% to Ft 6,801 on a turnover of Ft 7.02 billion on the eve of the bank's H1 financial report.

Magyar Telekom declined 1.25% to Ft 790 on a turnover of Ft 1.1 billion.

Drug company Richter gained 1.61% to Ft 32,200 on a turnover of Ft 2.47 billion.

The BSE Big Four generated 97.44% of the exchange's composite Wednesday turnover.

Of 16 BUX-listed issuers, 4 gained on Wednesday, while 11 lost and 1 ended at the break-even mark.

István Kralik of KBC Securities commented that MOL declined more than 5% on Wednesday in spite of publishing an expectation-conforming financial report on Tuesday, adding that many foreign investors sold their MOL shares following the emergence of news that the Hungarian oil and natural gas company would make an offer for a further stake in INA at an as yet undetermined price. Kralik noted that many investors are worried that MOL will pay too much for INA shares.

Tamás Éder of Buda-Cash commented that the Budapest Stock Exchange received a big “slap in the face” on Wednesday after more bad news from the United States and the Caucasus dampened global market sentiment. (MTI – Econews)