OTP Bank Set for Worst Week in 5 Months on S&P: Budapest Mover
The shares fell 2.9 percent to 4,400 forint by 11:39 a.m. in Budapest, extending the decline in the past five days to 5.4 percent, the biggest such drop since Oct. 19. The benchmark BUX stock index, in which OTP has the biggest weighting at 33 percent, slid 1.7 percent, down 2.2 percent in the week.
S&P kept Hungary’s rating at BB, two levels below investment grade, according to a statement published after the end of trading yesterday. Banks were among the biggest losers among European stocks today as Cypriot lawmakers begin a debate to unlock bailout funds and prevent a financial collapse.
“The stock market is reacting to the S&P move in an already negative international environment,” Budapest-based analysts at Erste Group Bank AG including Jozsef Miro wrote in a research report.
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
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.