BUX Strengthened on Rising Turnover This Week

The Budapest Stock Exchange's (BSE) share index, the BUX, rose by 1.76% this week, or 1,199.71 points, compared to last Friday's close, to close at 69,201.95 points, a new all-time high, MTI reported this Sunday morning.

Total turnover rose from HUF 46.306 billion to HUF 59.474 billion on a weekly basis. All the leading shares gained.

In its weekly summary, Equilor Investment Plc. highlighted Mol, which ended the first quarter with a mixed result, summarizing the quick reports of companies listed on the BSE. Adjusted EBITDA, estimated at replacement cost, rose to USD 718.4 million, 2.8% below analyst consensus. Net income of USD 265 million was 16% below expectations, but the 42% year-over-year decline was driven by the recognition of an annual tax on net sales.

OTP's first-quarter results, however, surprised. Consolidated adjusted profit after tax of HUF 240 billion exceeded analyst consensus by more than 8%. Net interest income exceeded expectations by 2.8%, while net fee and commission income was 2.7% below analysts' forecasts, bringing total income in line with expectations.

In addition to the rising net interest margin and improving risk costs, the contribution of foreign subsidiary banks to group-wide profit rose to 74%. Hungary's largest financial institution continued to buy treasury shares. It bought 314,642 of its own shares this week, bringing the total to 0.71%.

Also in OTP-related news, Autonomous Research raised its 12-month target price for the bank stock from HUF 22,464 to HUF 23,001, with the recommendation unchanged at an upside. Currently, 14 analysts have a buy recommendation and 4 have a hold recommendation on the stock, with a median target price of HUF 20,550.

In news related to the third largest Hungarian blue chip, Patria Finance has started tracking Richter shares with a buy recommendation and a target price of HUF 12,640.

Richter was the best performing stock on the Budapest Stock Exchange last week. The pharmaceutical company's shares ended the week up HUF 315, 3.37%, with a closing price of HUF 9,650 and a turnover of HUF 8.679 billion.

OTP shares rose by HUF 230, up 1.27% to HUF 18,315, with a weekly turnover of HUF 38.034 billion.

Magyar Telekom closed at HUF 932, up by HUF 7, or 0.76%, with a total turnover of HUF 2.268 billion.

Mol shares rose by HUF 54, up 1.79%, to close at HUF 3,076 with a weekly turnover of HUF 7.994 billion on Friday.

The BUMIX index of small and medium-sized shares gained 24.82 points, 0.41%, to close at 6,031.91 points on Friday.