Gedeon Richter Drops Most in 14 Months on MSCI: Budapest Mover

Gedeon Richter Nyrt., Hungary’s biggest drugmaker, plunged the most in 14 months as MSCI Inc. (MSCI) said it will drop the company from its Hungarian index at the end of this month after a semi-annual review of the gauge’s members.

The shares slumped as much as 8.7 percent and last traded 5.5 percent lower at 38,400 forint by the close in Budapest, the biggest drop since September 2011. The benchmark BUX stock index in which Richter has a 19 percent weighting slid 1.8 percent.

Richter was the only Hungarian stock to be removed from the MSCI Hungary Index, effective Nov. 30, according to a statement on MSCI’s website. Investment funds which follow MSCI indexes will probably sell Richter shares, according to Akos Kuti, a Budapest-based analyst at broker Equilor Befektetesi Zrt.

“The exclusion will lead to selling pressure on the stock over the next few days until the exclusion date,” Carsten Hesse, a London-based analyst at Wood & Co., wrote in a research report today. Hesse said Richter’s deletion was a “major surprise.”

To contact the reporter on this story: Andras Gergely in Budapest at

To contact the editor responsible for this story: Gavin Serkin at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.