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BUX Index Fell on Falling Turnover

D&T
January 28, 2024

The stock index of the Budapest Stock Exchange (BSE) fell this week on a declining turnover. The BUX closed at 64,092.56 points on Friday, 488.31 points, 0.76% lower than a week earlier, MTI reported this Sunday along with a brief analysis.

The total weekly turnover of the stock market fell from HUF 65.953 billion to HUF 65.719 billion, with leading shares performing mixed.

In its weekly summary sent to MTI, Equilor Investment recalls the "tussle" between the Hungarian National Bank and the Ministry of National Economy this week over the change in the benchmark lending rate, which S&P analysts say would reduce banks' profitability and undermine foreign investors' confidence.

In macroeconomic news, Mihály Varga's radio interview on Monday was highlighted, in which the finance minister said that growth should be stimulated this year so that the public deficit could fall to 3% next year.

The BUX index was characterized by considerable volatility this week. On Monday, the Budapest Stock Exchange continued the previous week's rise, closing at a new all-time high of 64,709.34 points, with Magyar Telekom's share price approaching HUF 800.

On Tuesday, the benchmark index fell by nearly 900 points on news of the restructuring of corporate lending, but in the following two days, buyer interest increased again and the BUX largely recovered its Tuesday losses. The Hungarian market underperformed international capital markets on the last day of the week.

Magyar Telekom's share price rose the most this week, by HUF 12, or 1.57%. It closed the week at 777 forints, with a total turnover of HUF 3.6 billion.

Mol closed the week at HUF 2,848, up HUF 10, or 0.35%, on a turnover of HUF 7.9 billion.

The other two blue chips closed with losses. Shares in Richter were worth HUF 105, 1.11% less than a week ago, closing at HUF 9,330 on Friday, with total turnover of more than HUF 9.6 billion.

OTP shares weakened by HUF 315, or 1.83%, to HUF 16,895 for the week on turnover of more than HUF 40.9 billion. The BUMIX index of small and medium-sized shares rose by 52.82 points, up 0.94%, to 5,654.33 points.

D&T

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