BUX Index Fell Over 3% This Week

The Budapest Stock Exchange (BSE) share index, the BUX, closed the week at 43,077.69 points, down, amid unfavorable international sentiment, 3.07% on the previous week, or 1,362.79 points, MTI reported this Sunday morning along with a brief analysis of the week.

Turnover on the stock market rose from HUF 36.495 billion to HUF 47.274 billion, with all leading shares weakening.

The BUX continued to fall until the last trading day of the week, with turnover higher than the previous week.

The reason for the negative stock market sentiment is seen by traders as expectations of international interest rate hikes, with both US and Western European stock markets falling and the banking sector performing particularly poorly. Friday's US labor market data confirmed expectations that the Fed's monetary policy, in its role as the central bank, could remain tight.

Hungarian-related macroeconomic data published this week (January retail sales and industrial performance, February consumer price developments and January external trade in goods) were in line with analysts' expectations. On Friday, OTP's better-than-expected fourth quarter flash report helped the BSE correct.

The largest Hungarian bank's profit from its foreign subsidiaries largely offset losses from the war and government cutbacks, with its consolidated profit after tax – excluding adjustments – falling just 24% to HUF 347 billion in 2022. The bank's share price rose 1.9% from a two-month low on Thursday to HUF 10,250 on Friday.

OTP lost 2.84% to HUF 300 from last Friday's close on weekly turnover of HUF 30.619 billion.

Among the leading stocks, Richter weakened the most. Its Friday closing value of HUF 7,495 was 3.91%, HUF 305 lower than the previous week, while its total turnover exceeded HUF 9.304 billion.

Magyar Telekom ended the week at HUF 392, down 1.13%, or HUF 4.5, with weekly turnover exceeding HUF 1.153 billion.

Mol weakened to HUF 10,250 by Friday's close, falling HUF 3.68% to 98 in a week on turnover of more than HUF 5.6 billion.

The BUMIX index of small and medium-sized shares closed at 3562.96 points, down 0.57% or 20.42 points on the previous week.