May 31 (Bloomberg) -- Mol Nyrt., Hungary’s largest refiner, rebounded from the lowest close in more than seven months as a technical indicator signaled the company’s slump was overdone and European stocks rallied.
The shares increased 3.2 percent to 15,270 forint at 11:13 a.m. in Budapest, paring their monthly decline to 15 percent. The benchmark BUX stock index, in which Mol has the biggest weighting at 31 percent, gained 2.4 percent to 16,356.35 today, cutting its retreat in May to 10 percent.
Mol’s 3.9 percent plunge yesterday pushed its 14-day relative strength index to 25, below the 30 level that indicates to some analysts a stock is oversold. European shares rose as polls showed Ireland will back measures to contain the debt crisis and data showed German retail sales jumped a second consecutive month in April.
“Hungarian stocks were sold off to unjustified levels yesterday, that’s what we are bouncing back from,” Tibor Barath, a Budapest-based trader at Erste Group Bank AG, said by phone today.
OTP Bank Nyrt., Hungary’s largest lender, fell to 3,429 forint from yesterday’s close of 3,460 forint as the stock traded without the right to a dividend for the first time today. Excluding the dividend, the share price rose 2.1 percent.
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