BUX Index Fell in Rising Turnover This Week

The share index of the Budapest Stock Exchange (BSE) fell in rising turnover this week, closing at 41,941.27 points on Friday, down 3.23% on the previous week, or 1,402.11 points, the state news agency MTI reported Sunday morning, along with a short analysis.

The weekly turnover of the stock market was HUF 58.03 billion%, down from HUF 34.48 billion% the previous week, with leading shares weakening.

In its summary sent to MTI, Equilor Befektetési Zrt. highlighted among the week's economic events that the Monetary Council of the Hungarian National Bank (MNB) raised the base rate and the interest rate corridor by 100 basis points at Tuesday's interest rate decision meeting, in line with expectations. In addition, several liquidity tightening measures were adopted. Banks' required reserve ratios will be increased. They will introduce a regular central bank discount bond and a long-term deposit facility into which half of the liquidity in the one-week deposit facility can flow, Equilor recalled.

The commentary pointed out that according to Economic Development Minister Márton Nagy, the price caps have fulfilled their role but have become unsustainable and will have to be phased out sooner or later because they have a market distorting effect.

This week, OTP's share price fell 7.36% on HUF 32.39 billion% in turnover, with the paper ending trading at HUF 8,504% on Friday. The BUMIX index of small and medium-sized shares closed the week at 3,862.17 points, down 68.04 points or 1.73% on the previous week.