BUX Index Fell on Falling Turnover This Week

The stock index of the Budapest Stock Exchange (BSE) fell this week, closing at 56,091.37 points on Friday, 919.38 points or 1.61% lower than a week earlier, MTI reported Sunday morning.

The weekly turnover of the stock market was HUF 34.75 billion, down from HUF 35.45 billion the previous week, with leading shares weakening.

According to Equilor Investment Plc.'s weekly commentary, leading Hungarian stocks performed weakly last week, with Mol and Richter in particular falling, but OTP and Magyar Telekom are also in a negative correction phase.

It was reported that target increases were received for OTP Bank. mBank raised its target price on OTP Bank from HUF 17,936 to HUF 20,387 and Autonomous Research raised its target price from HUF 17,846 to HUF 20,500, with an unchanged buy or overweight recommendation.

Among the week's events, the Monetary Council of the National Bank of Hungary decided on another 75 basis points rate cut on Tuesday, as expected. The central bank's message remained unchanged: both the risks surrounding global disinflation and the volatility of international investor sentiment warrant prudent monetary policy. The Council will continuously assess the incoming macroeconomic data, the inflation outlook and the evolution of the risk environment, and will decide on further changes to monetary conditions in the coming months on the basis of these developments, the Monetary Council said in a statement issued after the decision.

In its summary, Equilor also noted that the European Commission on Thursday approved Hungary's revised RRF program, which was complemented by a EUR 4.6 billion RePowerEU chapter aimed at ensuring cheaper, more secure and sustainable energy supplies. The reconstruction plan is now worth EUR 10.4 billion, of which EUR 6.5 billion will be provided in the form of grants and EUR 3.9 billion in the form of loans. The European Council has four weeks to approve the EUR 0.9 billion pre-financing for Hungary. Further regular payments will be made depending on the achievement by the Hungarian government of the 27 super milestones concerning issues relate to, among others, legal state and corruption.             

Among the leading stocks, Mol's share price fell the most this week, by 2.92%, closing at HUF 2,730 on Friday, on weekly turnover of HUF 8.05 billion.

Richter's share price fell by 2.12%. The stock closed Friday at HUF 8,545, with a weekly turnover of HUF 4.94 billion.

OTP weakened by 0.79% this week, ending Friday's trading at HUF 13,770 with a weekly turnover of HUF 12.63 billion.

Magyar Telekom was down 0.16%, with a weekly turnover of HUF 1.05 billion, closing Friday at HUF 607.

The BUMIX index of small and medium-sized shares closed the week at 5,057.69 points, down 0.63 points, or 0.01%, on the previous week.