Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG (DTE), slid the most in more than three months after the government increased a tax on cables, wires and pipes.
The shares fell 2.2 percent to 397 forint at the close in Budapest, the steepest slump since Aug. 9 and bringing the drop in the past three days to 4.3 percent. The benchmark BUX stock index fell 0.2 percent today, declining for a fifth day.
Parliament yesterday approved a levy of as much as 125 forint per meter on electricity, telecommunication, natural gas, heating, water and wastewater infrastructure. The tax, which the government earlier proposed to cap at 100 forint per meter, will cost Magyar Telekom 9 billion forint ($41 million) to 11 billion forint a year, the company said in a statement to the Budapest Stock Exchange late yesterday.
“We expect the selling pressure in Magyar Telekom shares to continue in the near term,” Gergely Palffy, a Budapest-based analyst at KBC Groep NV (KBC), wrote in a research report today.
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