BUX shows renewed strength

Telco

The Budapest Stock Exchange's main BUX index finished up 1.65% at 18,684.50, a near six-month high, Wednesday after garnering 0.06% Tuesday. It is up 12.33% from year-end, after losing 10.40% last year. Amid a global rebound, the Budapest parquet accelerated...

Overriding fears of an earlier-than-thought tightening by the US Fed, ECB' QE may also be starting to support, shepherding money from euro zone bonds back into shares, analysts add.

Despite analysts views that the pressure on Hungary's central bank to cut rates was now lighter if calculated merely on deflation concerns which eased recently, the government encouraged the market on Wednesday when a senior Economy Ministry official told public television that continued low inflation should allow the National Bank of Hungary (NBH) to cut its base rate. State secretary Gabor Orban of course stressed the decision was up to the bank's monetary council.

January data out Wednesday showed Hungary's trade surplus growing, but annual exports and imports growth sharply slowing from December and from the annual average last year.

Hungary's brokerage scandals have caused a crisis of confidence that will probably undermine a fledgling corporate bond market for years even though they carry no systemic risk to investment funds in general, a top fund manager said on Wednesday. The NBH suspended the licence of a third brokerage within two weeks on Monday.

OTP gained 3.27% to HUF 4,735, a more than nine-month high, on turnover of HUF 9.58 bln from a HUF 11.57 bln session total, a third above the daily average this year.

MOL improved 0.04% at HUF 11,855 on turnover of HUF 684 mln.

Magyar Telekom lost 0.26% to HUF 391 on turnover of HUF 384 mln.

Richter advanced 2.55% to HUF 3,820 on turnover of HUF 810 mln.

The bourse's mid-cap BUMIX went out 0.14% higher at 1,516.20.

Elsewhere in the region, the WIG 20 in Warsaw was up 0.46%, while Prague's PX increased 0.44%. Western Europe's major indices were all up ahead of their close Wednesday, FTSE-100 in London 0.34%, DAX30 in Frankfurt 2.63%, and CAC40 in Paris 2.43 %.

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