OTP Leads Stocks Lower as Recession Deepens: Budapest Mover
OTP Bank Nyrt., Hungary’s largest lender, slid the most in more than a week, leading the benchmark stock index lower as the country’s recession deepened more than forecast in the fourth quarter.
The shares dropped as much as 4.3 percent and traded 2.2 percent lower at 4,801 forint by the close in Budapest. The volume was 191 percent of the three-month average. The BUX stock index, in which OTP has the highest weighting at 34 percent, slid 1.9 percent.
Gross domestic product retreated 2.7 percent in the fourth quarter from a year earlier, the most in three years, the Budapest-based statistics office said today. The median estimate of 18 economists in a Bloomberg survey was a 1.9 percent drop. The slide compares with a 1.7 contraction in the Czech economy in the same period, also announced today. Hungarian stocks reacted to the “shockingly bad” GDP data, said Peter Varju, a Budapest-based trader at Erste Group Bank AG.
“OTP is the most sensitive stock to changes in the macroeconomic environment,” Varju said by phone. “Data like this is best reflected in OTP’s shares.”
To contact the reporter on this story: Andras Gergely in Budapest at firstname.lastname@example.org
To contact the editor responsible for this story: Wojciech Moskwa at email@example.com