Equity 2 July 2019, 9:38am

Updated rankings of Hungarian brokerages show change on top

Portfolio

Turnover declined by a double-digit figure month on month on the Budapest Stock Exchange (BSE) in June. More than half of the combined turnover was generated by OTP. Other than blue chips, only 4iG managed to generate any meaningful turnover. As regards the ‘battle’ between brokerages, Erste emerged victorious from the Concord-Wood-Erste bout this month.

The BUX index fell 1.5% m/m in June 2019, mainly due to a 7% decline in OTP’s share price. The general index of the Budapest Stock Exchange (BSE), however, remains higher than it was at the end of last year. Mol also finished the month lower, whereas Richter was flat and Magyar Telekom edged slightly higher.

As for international sentiment, U.S. stock exchanges had a great run in June and rose to new all-time highs. The two large central banks, the Federal Reserve and the European Central Bank (ECB) are gearing up for easing, as a result of which the yield on 10-year bonds fell significantly both in the U.S. and in Europe that had a favourable impact on stock exchanges.

Turnover on the Hungarian bourse declined substantially in June from May and the year-on-year comparison also shows a double-digit decrease. Duplicated turnover reached HUF 355.4 billion in June, down 32% m/m and 16% yr/yr. Daily average turnover was HUF 9.4 bn last month, which marks a nearly 21% decline over May.

OTP shares generated the largest turnover last month, and it made up more than half of total turnover on the BSE. Mol was responsible for 18% of total turnover, whereas Richter generated 14% of the total. Other than blue chips, 4iG recorded a HUF 12.9 bn turnover, beating even blue chip Magyar Telekom.

The shares of another new company were floated on the BSE in June, as trading with the shares of MKB Bank started. Also, 4iG and AutoWallis progressed into premium category, whereas the papers of Konzum were taken out of trading as the company amalgamated into Opus, creating the fifth-largest company on the bourse.

Erste came out victorious from the battle of the brokerages, followed by Wood and Concorde. The three brokerages, which have been neck-and-neck for months, managed 72% of total turnover on the market. The fourth largest brokerage, Random, was responsible only for 5% of total turnover in June.