BUX Rose on Rising Turnover This Week

The stock index of the Budapest Stock Exchange (BSE) rose this week, closing at 65,290.31 points on Friday, up 1,197.75 points or 1.87% from a week earlier, MTI reported on Sunday with a brief analysis of the week’s training.

The weekly turnover of the stock market was HUF 70.77 billion, up from HUF 65.71 billion the previous week, with the leading shares, except Magyar Telekom, gaining.

The BUX index rose to a new all-time high of 65,320.88 points on Thursday after an agreement at the EU summit to support Ukraine in line with Hungary's objectives, according to a weekly summary by Equilor Investment Plc. Due to the realization of profits on Friday, the share index ended the week down 0.05% on the day at 65,290.31 points. 

Among the week's events, it was highlighted that the Monetary Council cut the base rate from 10.75 to 10% at its meeting on Tuesday, against forecasts for a 100 basis point cut. In a background briefing after the meeting, MNB Vice Governor Barnabás Virág said that macroeconomic fundamentals would have allowed for a larger cut, but the development of the domestic risk environment led them to opt for an unchanged rate cut.

In its summary, Equilor also noted that two target rate hikes were made on OTP this week. On Monday, Citi raised its 12-month target price on OTP Bank from HUF 16,450 to HUF 19,350, while Morgan Stanley raised its target from HUF 18,800 to HUF 19,000. At the same time, the previous overweighting recommendation has deteriorated to a market weighting, as the price of the bank's paper has risen sharply in recent months.

Among the leading stocks, Richter's share price rose the most this week, by 3.59%, with the paper closing at HUF 9,665 on Friday, on weekly turnover of HUF 11.46 billion.

The price of Mol rose by 2.81%. The stock closed Friday at HUF 2,928 with a weekly turnover of HUF 8.3 billion.

OTP gained 1.01% this week, ending Friday's trading at HUF 17 065, with a weekly turnover of HUF 45.99 billion.

Magyar Telekom closed unchanged at HUF 777 on Friday, with a weekly turnover of HUF 2.22 billion. The BUMIX index of small and medium-sized shares closed the week at 5,661.48 points, up 6.95 points or 0.12% on the previous week.