OTP Bank Nyrt. (OTP), Hungary’s largest lender, rallied, capping its biggest monthly gain in almost two years, after European Union leaders completed a treaty on fiscal discipline which Hungary also accepted.
The shares jumped as much as 4 percent, before closing 0.3 percent higher at 4,013 forint by the end of trading in Budapest, for a 25 percent gain in January, the most since March 2010.
Hungary, the EU’s most indebted eastern member, will support a fiscal compact after modifications were made to the text, Prime Minister Viktor Orban told reporters in Brussels late yesterday. The backing of the Hungarian premier, who had previously said that Parliament would have to make the final decision on the accord, means only Britain and the Czech Republic boycotted the plan.
OTP has rallied this month as investors became more optimistic Hungary will obtain aid from the International Monetary Fund and the EU. The stock has jumped 35 percent since Orban said on Jan. 5 he was ready to discuss conditions for a “quick” deal on the bailout.
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