BUX Index Up 38.42% This Year

The Budapest Stock Exchange (BSE) index rose by 38.42% to 16,826.25 points compared to last year's close, ending this year's trading session at 60,620.01 points.

The BUX closed the last week of three trading days of the year with a 0.54% rise to 325.61 points, with total turnover exceeding HUF 13.6 billion. The leading shares gained on both a weekly and annual basis.

The BSE started the year on a strong note, with the stock index up by almost 5% in the second week of the year, but from mid-February onwards it underperformed for almost a month. The decline was mainly caused by the negative international sentiment, with the economic impact of the protracted war in Ukraine, and in particular rising inflation worldwide, being the main factor. Investors had expected monetary tightening and interest rate hikes, which had a negative impact on European stock markets, with bank shares weakening the most. The BUX also reached its low for the year on March 17, at 40,771.24 points. The last time it was lower than this was in October 2022, when investor sentiment turned sharply negative on European recession concerns.

Trading improved again in the second half of March, with the index rising with some small interruptions. Foreign buyers returned to the BSE in April, the effects of the banking panic were soon over, and trading in the summer months was generally good even when it was less so on Western stock markets. The BUX had already surpassed 55,000 points by the close on 8 August, and on August 17 it reached a historic high of 56,470.09 points for the first time this year. Analysts said investors appreciated the improvement in the economic environment and the negotiations on EU funds, with recession fears easing globally by mid-year. 

In the fall, news of a US interest rate hike and the conflict in Gaza again weighed on international sentiment, with the BUX falling below 58,000 points in mid-September and not rising above that level until December. However, trading was boosted by news of falling inflation and EU funding, with the stock index breaking several historic records in the last month of the year, passing the 60,000-point mark in mid-December. This year's closing high was set on December 20 at 61,061.16 points. The momentum only slowed down again as the festive season approached, with many investors selling their recently strengthened shares.

The BSE also saw some new entrants this year, with one issuer leaving for good. Shares in food producer Civita Group were listed in May, BSE shares in June, and shares in property management holding Biggeorge REIT Plc started trading in November. In September, the Hungarian National Bank (MNB) ordered the delisting of OTT-ONE Plc. shares for the technology company's failure to publish a series of earnings reports.

Magyar Telekom performed strongly on both a weekly and annual basis, with a significant gain in the last third of the year. Its share price rose by HUF 19 in a week, or 2.87%, to HUF 682 on turnover of more than HUF 402 million, up 101.18% compared to the end of 2022.

The OTP rose by 0.32 per cent in the last week, by HUF 50 to HUF 15,800, with a total turnover of nearly HUF 7.3 billion. Its shares are worth 56.28% more than at the end of 2022.

Mol gained 0.14%, up HUF 4 to HUF 2,826 at Friday's close, with weekly turnover of more than HUF 2.68 billion. Its share price rose 8.61% year-on-year. 

Richter rose 0.57 per cent, or HUF 50, in the last week to stand at HUF 8750 at Friday's close, with a turnover of HUF 1.71 billion. It gained 5.42% from its end-2022 level.

The BUMIX index of small and medium-sized shares, up 1.48%, 77.02 points, ended the year at 5,283.06 points. It was up 46.56% from last year's close.