OTP Dropping Most in Month Leads BUX Index Down: Budapest Mover
The shares dropped 2.9 percent to close at 4,660 forint in Budapest. The benchmark BUX stock index, in which OTP has a 33 percent weighting, slid 1.8 percent to 18,749.84.
The Fed bond buying helped the BUX rally 7.1 percent last year, its best performance in three years, boosted by a 29 percent jump in OTP. Several Fed policy makers said the central bank should be ready to vary the pace of its $85 billion of monthly bond purchases, according to minutes of the Fed’s Jan. 29-30 meeting released yesterday.
“Stocks took a sharp turn lower as markets had priced in that the Fed’s loose policy wold prevail at least until year- end,” Zsolt Kondrat and Zsolt Balasy, Budapest-based analysts at Bayerische Landesbank’s MKB unit, wrote in a research report.
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