OTP Bank Nyrt. advanced for a second day, leading gains in the country’s stocks after Moody’s Investors Service said Hungarian central bank moves last week to boost lending were “credit positive” for lenders.
Hungary’s largest bank gained 1.5 percent to 4,004 forint by the close in Budapest. The BUX gauge advanced 1.1 percent to 19,354.75. OTP has a “Ba2” long-term rating at Moody’s.
The Magyar Nemzeti Bank last week said it will offer a two-year collateralized credit facility to commercial banks, start a universal mortgage bond-purchase plan and expand the range of eligible collateral to increase lending.
“These initiatives are credit positive as they aim to improve banks’ maturity and currency mismatches,” Simone Zampa, a vice president and senior analyst at Moody’s, wrote in an e-mailed report today.
MSCI Emerging Market Index jumped as much as 0.6 percent after China cut banks’ reserve requirements and ahead of a meeting of euro-area finance ministers to discuss a Greek bailout.
“We can witness a positive market reaction as further cuts may be on the cards” in China’s reserve requirements, Akos Kuti, a Budapest-based analyst at Equilor Befektetesi Zrt. in Budapest, and colleagues wrote in an e-mailed report today.
Hungary accepted the majority of the European Commission’s demands on three infringement procedures against the country which have blocked talks for European Union and International Monetary Fund assistance, Foreign Minister Janos Martonyi said in a HirTV interview late yesterday.