BUX Index Fell on Falling Turnover This Week

The stock index of the Budapest Stock Exchange (BSE) fell this week, closing at 68,088.24 points on Friday, 1,113.71 points, 1.61 percent lower than a week earlier, MTI reported Sunday morning along with a brief analysis of the week's trading.

The stock market turnover for the week was HUF 49.84 billion, down from HUF 59.47 billion the previous week, with the leading shares, with the exception of Magyar Telekom, weakening.

The BUX closed lower all week, including Friday, with the exception of Thursday's 0.26% rise, when the stock index fell due to unfavourable investor sentiment in Europe.

Equilor Investment Plc.'s weekly summary showed that Richter's first-quarter revenue was HUF 203.4 billion, which was largely in line with consensus. A weaker forint exchange rate resulted in a financial gain of HUF 15.6 billion, with the resulting net profit of HUF 68.5 billion a significant surprise, beating expectations by 27%.

They added that Magyar Telekom's revenue grew by more than expected on a year-on-year basis, by 14.5% to HUF 224.2 billion in the first three months of this year. Net profit of HUF 33.7 billion tripled year-on-year and beat consensus by more than 18%. Adjusted net profit attributable to shareholders rose by almost 214% to HUF 38.1 billion. The company raised its earnings expectations for this year to HUF 140 billion from HUF 130 billion, an annual increase of almost 50% compared to the previous year.

The analysis referred to Magyar Telekom's announcement on Thursday that it would not be able to conduct the share buyback auction announced on May 9 due to a change in an EU regulation. However, the company indicated that it remains committed to the buyback and is exploring how to implement it.

This week also saw positive figures from Graphisoft Park, whose first quarter revenue rose 2.8% year-on-year to EUR 4.3 million and net profit increased 4% to EUR 2.1 million.

Also this week, Waberer's published its first quarter report, which showed that with record sales of EUR 196.7 million, EBIT fell to EUR 8.5 million, while net profit declined 89.5% on an annual basis to EUR 1.1 million.

OPUS announced on Thursday that it will buy back shares worth up to HUF 2 billion, with the total nominal value of treasury shares not exceeding 20% of the share capital at any given time. The programme will run from June 17 to October 15, with a maximum limit of HUF 548.

According to Equilor's weekly summary, Autonomous Research raised its 12-month target price on OTP Bank from HUF 23,001 to HUF 24,082, with the recommendation unchanged at overperform. There was also a target increase on Richter, with RBC Capital raising their 12-month target price on the pharmaceutical from HUF 12,200 to HUF 12,400, with the recommendation unchanged at Overperform.

It was also mentioned that the next interest rate decision meeting will be held by the National Bank of Hungary next Tuesday, where Equilor expects a 50 basis point rate cut.

Among the leading shares this week, Magyar Telekom rose 1.82%, closing at HUF 949 on Friday, with a weekly turnover of HUF 4.31 billion.
Mol weakened by 1.63%. The share closed Friday at HUF 3,026 with a weekly turnover of HUF 7.27 billion.
OTP fell 1.69% this week, ending Friday's trading at HUF 18,005 with a weekly turnover of HUF 24.81 billion.
Richter closed 3.78% lower at 9285 forints on Friday, with a weekly turnover of HUF 9.4 billion.

The BUMIX index of small and medium-sized shares closed the week at 6,107.55 points, up 75.64 points, or 1.25%, on the previous week.