Budapest Stock Exchange Index Up on the Week

The stock index of the Budapest Stock Exchange (BSE) rose on rising turnover this week, closing at 52,675.9 points on Friday, 719.16 points or 1.38% higher than a week ago.

Turnover on the stock market was HUF 77.70 billion, up from 52.44 billion last week, with the leading shares, with the exception of Richter, gaining.

In a summary sent to the state news agency MTI, Equilor Investment Plc. said that the year is off to a good start on the BSE, with the BUX index breaking through the 52,000-point resistance level this week and even trading above 54,000 points. However, the BUX index closed the second trading week of the year down 1.97% due to profit realization.

It was reported that target price increases were also received for OTP and Magyar Telekom. mBanku raised its 12-month target price on OTP Bank from HUF 15,143 to HUF 22,882, changing its recommendation from hold to buy. Goldman Sachs raised its 12-month target price on the telecom company from HUF 471 to HUF 482, with an unchanged neutral recommendation.

It was also reported that the oil and gas company Mol has signed agreements with PKN Orlen and Grupa Lotos. Mol has purchased 417 filling stations in Poland. The network provides nationwide coverage and will enable Mol to become the third largest player in the Polish retail fuel market. The transaction will be financed by Mol using available liquidity and will not negatively affect the company's previously announced dividend potential. Under the terms of the purchase agreement, the total purchase price is USD 610 million, giving Mol a purchase price of around USD 1.5 million per station, which Equilor said was in line with expectations. The closing of the transaction is subject to, among other things, the approval of the European Commission. Pending final approval of the acquisition, as part of the deal Mol will sell 185 service stations to PKN Orlen for USD 259 million, of which 144 stations will be located in Hungary and 41 in Slovakia. Both the sale and purchase transactions will close with a net debt and working capital adjustment to the purchase price, with both transactions expected to close within 12 months. In addition, Mol has signed an agreement with Norm Benzinkút (‘Filling station’) Ltd. to purchase 79 filling stations in Hungary.

OTP's share price rose the most this week, by 2.44%, ending Friday's trading at HUF 17,610, with a weekly turnover of more than HUF 56.54 billion.