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Budapest shares seen as insulated

The Budapest Stock Exchange, shown above, has been weathering the global roller-coaster ride reasonably well, keeping pace with most European exchanges.

As András Nagy, analyst of Erste Bank Hungary notes, Hungary’s blue chips are relatively insulated. ‘The majority of Hungarian companies listed on the BSE are only indirectly affected by the worries in China. Only Richter is directly linked to China: Based on 2014 data, 3.8% of its revenues came from China,’ Nagy said. ‘MOL’s performance is indirectly affected by the price of oil, which decreases the result of upstream activity. OTP and MTel are only affected by the global investor mood. As the Hungarian stock market is only indirectly affected, only a moderate negative impact is expected.’