BUX further down in European gloom

Telco

The Budapest Stock Exchange's main BUX index finished down 0.19% at 17,123.76 Friday, after falling 0.67% Thursday. It is down 7.76% from the end of last year, after it rose 2.15% in 2013. Headwind from Western markets and local political worries shackled the Budapest parquet.

The US is putting Hungary under great pressure because objections in Washington to the Russian-backed South Stream pipeline and the expansion of the Paks (C Hungary) nuclear power station with new Russian reactors, Prime Minister Viktor Orban said in Munich Thursday evening, while a confidence crisis caused by the US banning six Hungarian government-related persons, including the head of Hungary's tax and customs authority, from entry into the US because of alleged corruption simmers in the background.

September foreign trade figures came in Friday better than expected, resulting in a record monthly surplus, prompting Erste Bank to forecast whole year trade surplus to be higher than last year, bit this hardly concerned BUX as September's exports were likely boosted by German luxury car maker Audi's capacity expansion at its Hungarian plant.

At the same time, Erste Bank cut its forecast for Hungary's industrial output growth this year even deeper in light of September's lower-than-expected data.

OTP fell after analyst forecasts published Friday penciled in narrowing revenues and after-tax results ahead of the bank's third quarter numbers next week.

MOL still faired well on good quarterly results on Thursday.

Magyar Telekom suffered further after it had confirmed on Thursday that it would not pay dividend for a second year.

On buying into losses, Richter recovered a bit from its 2.98% plunge Thursday after it had posted 50% less third quarter profits than a year ago on costs and narrowing markets in Russia and Ukraine, and the company cut its operating profit margin guidance, although it raised its revenue target.

OTP lost 1.24% to HUF 3,901 on turnover of HUF 3.59 bln from a HUF 5.50 bln session total, little more than two-thirds of the daily average this year.

MOL gained 0.51% to HUF 11,760 on turnover of HUF 401m.

Magyar Telekom ended flat at HUF 343 on turnover of HUF 181m.

Richter advanced 0.32% to HUF 3,728 on turnover of HUF 1.30 bln.

The bourse's mid-cap BUMIX went out 0.84% lower at 1,465.73.

Over the week, the BUX was down 1.13% after increasing 0.13% the previous week.

OTP sank 4.03% after rising 0.87% last week.

MOL recovered 0.51% after dropping 0.13% the previous week.

Magyar Telekom rose 0.88% after gaining 1.80% last week.

Richter retreated 0.67% after losing 1.05% over the previous week.

Elsewhere in the region, Warsaw's WIG20 was down 0.74%, while Prague's PX won 0.64%. Western Europe's major indices were mixed ahead of their close Friday, FTSE-100 in London up 0.27%, DAX30 in Frankfurt down 0.99%, and CAC40 in Paris down 1.00%.

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