BUX Index Rose on Rising Turnover This Week

The Budapest Stock Exchange (BSE) share index rose in the week, with the BUX closing at 44,822.21 points on Friday, up 1.64%, or 721.34 points, from the previous week's close, MTI reported Sunday morning with a brief analysis of the week’s trading.

Turnover on the stock market was HUF 37.98 billion, up from HUF 21.09 billion the previous week, with the leading shares gaining.

In its weekly analysis sent to MTI, Equilor Investment Plc. said that the BUX surged in Thursday's trading after underperforming in the previous days, with OTP the leading stock gaining the most. The banking stock also performed well on Friday. Richter and Mol also ended the week well, although the shares were more sideways on Friday, they said.

In the summary, the positive market sentiment was justified by, among other things, encouraging news on EU funds and convergence of positions on contentious issues between the European Union and Hungary.

Several target price adjustments were also made during the week. Citi lowered its 12-month target price for Mol from HUF 3,300 to HUF 3,200, with the recommendation still a buy. Richter's target price was lowered from HUF 12,800 to HUF 12,600 by RBC Capital, the recommendation remains an overweight, Equilor said.

Also highlighted in the summary was the change in the extra profit tax for banks. From July 1, the taxable base will be profit generated in the ordinary course of business, instead of net sales, but the tax rate will also rise, with banks having to pay 13% of the portion below the HUF 10 billion tax base and 30% of the portion above HUF 10 billion. The change is slightly positive for OTP, Equilor wrote.

Of the leading shares, OTP gained 2.69% this week, closing at HUF 10,300 on Friday, with a weekly turnover of more than HUF 18.4 billion.

Richter's share price rose 2.06% this week, closing Friday at HUF 8,170, with a weekly turnover of almost HUF 8.7 billion.

The price of Mol rose by 1.26%, closing Friday at HUF 2,742, with a weekly turnover of HUF 9.1 billion.

Magyar Telekom gained 0.71%, closing Friday at 426 forints, with a weekly turnover of 934.3 million forints.

The BUMIX index of small and medium-sized shares ended the week at 3,354.23 points, down 99.13 points, 2.87% lower than the previous week.