BUX: Significant Rise Amid Declining Turnover

The Budapest Stock Exchange's (BSE) share index, the BUX, closed the week at 42,905.55 points, up 6.61% or 2,658.85 points compared to last Friday, the Hungarian state news agency MTI reported this Sunday morning.

Turnover was HUF 190.623 billion, down from HUF 322.227 billion the previous week. Leading stocks were stronger with the exception of Magyar Telekom.

In an analysis sent to MTI, Equilor Investment Plc. pointed out that the BUX closed higher for the first time since the Russian invasion. Analyst Bence Józsa also referred to Tuesday's interest rate decision meeting, which raised lending rates to 6.4% with a 100-basis-point increase. The central bank's decision expanded monetary room for maneuver, which is key in the current situation, he added.

Trading will continue to be mainly driven by war events, as the largest issuer, OTP, has interests in both the Russian and Ukrainian markets. However, the selling spree is over, which may suggest that the bank has passed its stock market low. MOL's share price has also not done well in recent weeks, but with oil prices rising globally, not even government regulation of fuel prices has not stopped the rally.

By the end of the week, stock market sentiment had improved across Europe, with investors less sensitive to geopolitical developments. Along with emerging market currencies, forint (HUF) fluctuations also eased.

OTP was the strongest performer this week, with a 15.65% gain on a turnover of HUF 152 billion. It ended the week at HUF 12,045.

The BUMIX index of small and medium-sized shares rose by 2.24% to 3,652.02 points on a turnover of just over HUF 2.4 billion.