The BUX index of the Budapest Stock Exchange (BSE) kicked off the last trading day of the week by a marked decline. After opening it was down 3%, with OTP hit the hardest. The banking stock is already 7% lower than its Thursday close; MOL dropped more than 2%; Magyar Telekom slipped 3%, while Richter eased by only 1.4%. No stock has gained on the Budapest bourse.
Uncertainties rise in Europe - 11:01
Following an initial rise leading European stock indices turned down. Germany’s DAX dipped by 1%, the French CAC eased 1.1% and London’s FTSE slipped 0.6%.
Uncertainties and a negative sentiment continue to weigh on the markets. German Chancellor Angela Merkel continues to rule out joint euro-area borrowing and a bigger role for the European Central Bank (ECB) in fighting the debt crisis. Meanwhile, Fitch Ratings cut Portugal’s credit rating by one notch to BB+ from BBB- and Moody’s pushed Hungary to non-investment grade - to Ba1 from Baa3 Thursday night.
The distress of European markets delivered yet another blow to the already tormented Hungarian bourse. OTP has already shed 7% and is getting every closer to local lows of HUF 2,750 and 2,680 that were left behind only weeks ago. MOL dipped 4.6% and Magyar Telekom slipped 3% to HUF 480. Richter holds its ground the most firmly, it dropped by only 1.4%.
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