Hungarian Stock Market Hit Record Highs This Week

The Budapest Stock Exchange (BSE) stock index, the BUX, rose 2.35% from last week’s close to reach a record high of 143,072.29 points on Friday. Weekly trading volume rose from HUF 103.0 billion to HUF 137.5 billion; leading stocks posted mixed results, with OTP setting a new all-time high.

The stock market index started the week on a downward trend due to unfavorable international sentiment, as investors became uncertain following the weekend’s unrest in Iran. On Tuesday, the parties sat down at the negotiating table; OTP bought back its own shares, while Mol announced a bond issuance on the Polish market, causing the BUX to hit a record high.

By midweek, the external environment had turned unfavorable again, so Wednesday’s trading session closed lower, while Thursday’s session ended with a significant rise and another BUX record. In addition to improved market sentiment, this was likely due to Mol’s bond offering in Poland, which caused the company’s stock price to rise by more than 3%.

The rally continued on the last trading day of the week, with both the stock market index and OTP closing the week at historic highs.

In its weekly summary, Equilor Investment Ltd. highlighted that OTP’s strength was the primary driver behind the BUX’s record highs, but Mol also contributed significantly to the rise in the second half of the week. Market sentiment was also positive elsewhere, as evidenced by the fact that the German DAX and the U.S. Dow Jones also hit record highs this week.

Among the events influencing domestic trading, it was noted that Magyar Telekom’s share buyback program had been completed. They added that HUF 3.7 billion remained in the buyback fund, and further purchases are planned for next spring, prior to the next annual general meeting.

Among the leading stocks this week, Mol saw the largest gain, rising 6.60% to close the week at HUF 3,910, with total trading volume exceeding HUF 12.9 billion.
OTP’s share price rose 2.42% to HUF 46,920, with weekly trading volume exceeding HUF 73.9 billion.
Magyar Telekom’s share price fell by 0.30% to HUF 2,670, with a trading volume of HUF 5.7 billion.
Richter’s share price fell by 0.57% to HUF 12,190, with a weekly trading volume exceeding HUF 8.3 billion.

The BUMIX index, which tracks small- and mid-cap stocks, rose 1.27% to close the week at HUF 9,381.56.