BUX still sharply down despite some global consolidation

MNB

The Budapest Stock Exchange's main BUX index finished down 0.90% at 18,092.86 Wednesday, after plunging 1.43% Tuesday. It is down 2.54% from the end of last year, after it rose 2.15% in 2013.

The chance that the EU might ease sanctions against Russia helped stem, but did not stop, the meltdown on the Budapest parquet.

EU ambassadors meet in Brussels later on Wednesday to review the sanctions while a ceasefire in

Eastern Ukraine appears to be holding, Reuters reported.

But the cloudy euro zone economic outlook and doubts about the effectiveness of easing measures of the European Central Bank (ECB) continued to cause risk aversion.

A new analysis by OTP experts on FDI increasingly leaving Hungary, and combined forex debt repayment of the sate and of private companies slowing, painted a bleak background.

OTP again held the main index down as still more and more local financial institutions get their defenses rejected in lawsuits against the state over their obligation to refund clients for allegedly unfair unilateral changes to loan contracts, while an EUR 3 bln swap line of the central bank from its own reserves, to mitigate the banks' burden, announced by the National Bank of Hungary (MNB) on Wednesday, did not help much.

OTP dove 3.46% to HUF 4,161 on turnover of HUF 9.14 bln from a HUF 11.40 bln session total, about 40% more than the daily average this year.

MOL gained 0.99% to HUF 12,225 on turnover of HUF 1.06 bln.

Magyar Telekom ended flat at HUF 357 on turnover of HUF 320 mln.

Richter retreated 0.47% to HUF 4,026 on turnover of HUF 721 mln.

The bourse's mid-cap BUMIX went out 0.39% higher at 1,494.44.

Elsewhere in the region, Warsaw's WIG20 was down 0.40c, while Prague's PX dropped 0.57%.

Western Europe's major indices were all up ahead of their close Wednesday, FTSE-100 in London 0.12%, Frankfurt's DAX30 0.56%, and CAC40 in Paris 1.00%.

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