Budapest Shares Lower In Thin Trade; Emerging Markets Could Suffer Risk Aversion

BUDAPEST (Thomson Financial) – Budapest shares edged lower in thin morning trade, tracking developments in major markets, as equity investors remain cautious over rising US bond yields.

Local analysts added that riskier emerging market stocks may be among the biggest losers if global equities see a downward correction.

At 11.48 am, the leading BUX index was down 0.1 pct at 26,263.55. By midday trading volume was about one tenth of the daily average.

Blue chips were mixed with MOL and Magyar Telekom edging higher.

MOL was up 0.51 pct at 24,525 forints, trading erratically as oil prices eased ahead of weekly data on US energy stocks.

OTP Bank dipped 0.43 pct to 9,260 forints, after falling 1.1 pct in the last session, bringing the index down with it.

FHB, the state-controlled mortgage bank, edged up slightly, climbing 0.70 pct to 2,300 forints as speculation over a possible buyer for the government’s stake rumble on.

Elsewhere, pharmaceuticals were down, as Richter dropped 0.92 pct to 36,165 forints, and its smaller sector peer Egis dipped 0.05 pct to 21,250 forints.

Richter CEO Erik Bogsch said in an interview that government regulatory changes have cost the industry 25 bln forints so far this year.

Magyar Telekom ticked up 0.11 pct to 950 forints as analysts said that announcements yesterday concerning further integration steps will have little impact on the share price as the most significant measures were already know.

tf.TFN-Europe_newsdesk@thomson.com

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Budapest shares lower in thin trade; emerging markets could suffer risk aversion