BUX Index Fell on Falling Turnover This Week

The stock index of the Budapest Stock Exchange (BSE) fell this week, closing at 66,093.62 points on Friday, 75.41 points or 0.11% lower than a week earlier, MTI reported this Sunday morning.

The weekly turnover of the stock market was HUF 49.57 billion, compared to HUF 70.39 billion the previous week, with the leading stocks, except OTP, gaining.

In a commentary sent to MTI on the week's events, Equilor Investment Plc. said that according to OTP's fourth quarter report last year, the bank's consolidated adjusted profit after tax amounted to almost HUF 230 billion, which is almost 4% above analyst consensus. At the same time, the cost-income ratio jumped to 45.3%, more than six% higher than in the third quarter. The contribution of foreign subsidiary banks to group profit fell to 55% in the fourth quarter from 62% in the third quarter.

Management expects organic growth to accelerate and interest margins to be similar to last year this year as it anticipates an improvement in the macroeconomic situation. Equilor quoted László Bencsik, OTP's deputy CEO, as saying that when the current share buyback program, worth a total of HUF 60 billion, expires, they may consider launching a new one. They are also actively looking for acquisition targets in the region, especially in countries where they are already present. However, they are certainly not looking to buy in Russia, he said.

The weekly summary also mentioned that OTP continued to buy its own shares, buying 39,000 shares on Monday, more than 33,000 on Tuesday, 19,000 on Wednesday and 45,000 on Thursday.

Equilor recalled that Richter is buying out Helm's stake in the joint ventures. The drugmaker announced this week that under the agreement with Helm AG it will become a 100% owner of Richter-Helm BioTec and Richter-Helm Biologics. For the transactions, Richter will pay a total of EUR 112.4 million, in addition to performance-related payments in the period 2025-2029. The transaction is subject to approval by the German and Hungarian competition authorities.

Among the leading stocks, Magyar Telekom performed the best this week. The telecoms firm's share price rose 5.10%, closing at HUF 886 on Friday, ending the week with a turnover of HUF 2.47 billion.

Richter gained 0.68%. The stock ended trading at HUF 9,690 on Friday, with a weekly turnover of HUF 7.11 billion.

Mol rose 0.41%, with a weekly turnover of HUF 4.47 billion, closing Friday at HUF 2,938.

OTP closed 1.95% weaker at HUF 17,085 on Friday, with a weekly turnover of more than HUF 30.49 billion.

The BUMIX index of small and medium-sized shares closed the week at 5,837.33 points, up 104.36 points, or 1.82%, on the previous week.