BUX Index Rose on Rising Turnover This Week

The stock index of the Budapest Stock Exchange (BSE) rose on the week, closing at 43,343.38 points on Friday, up 352.91 points or 0.82% on the previous week, the state news agency MTI reported this Sunday morning along with a brief analysis.

The weekly turnover of the stock market was HUF 34.48 billion, compared to HUF 29.96 billion the previous week, with the leading shares, except for Mol, rising.

Bence Józsa, an analyst at Equilor Investment Plc., said in a note to MTI that the BUX index started to rise in the second half of the week, driven by positive international investor sentiment.

The analyst recalled that CIG Pannónia reported strong growth. The Hungarian insurer's gross premium income rose 26% year-on-year in the second quarter. However, it is questionable whether the growth trend can continue despite the deteriorating external conditions, and how much extra burden the new insurance surcharge imposed by the government, which could be as much as HUF 400 million for this year, will put on the company.

Among blue chips, Magyar Telekom's share price rose 4% to HUF 338 this week, with turnover of HUF 359 million.

The BUMIX index of small and medium-sized shares closed the week at 3,930.21 points, up 78.03 points, 2.03% higher than the previous week.