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E-Star Falls Most in Five Years on Trading Range: Budapest Mover

E-Star Alternativ Nyrt. (ESTAR), a Hungarian energy supplier, fell the most in five years as the Budapest Stock Exchange expanded the limits of its permissible trading band after the company filed for bankruptcy.

The shares, which were excluded from the benchmark BUX index as of yesterday, tumbled 25 percent to 222 forint by the close in Budapest. The stock has plunged 95 percent this year as the company failed to redeem bonds that matured in October and struggled to buy back the securities as well as bonds due 2014 and later.

The bourse allowed the shares to rise or fall by a maximum of 30 percent, compared with the earlier daily limit of 15 percent on either side, according to a statement from the exchange late yesterday. The company plans to reach an agreement with its creditors under the bankruptcy procedure to ensure future operations, E-Star said in a statement last week.

“We expect to see further negative market sentiment toward E-Star,” Peter Szentirmai, a Budapest-based analyst at KBC Groep NV (KBC), wrote in a research report before the open today.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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