OTP Bank Retreats After Seven-Day Rally on Global Growth Concern

Oct. 8 (Bloomberg) -- OTP Bank Nyrt., Hungary’s largest lender, snapped a seven-day rally on concern the global economy is slowing as the country struggles to recover from recession.

The shares fell 1.1 percent by 11:42 a.m. in Budapest after rising 9.2 percent in the seven days through Oct. 5. The benchmark BUX stock index declined 1 percent.

European stocks dropped the most this month as the World Bank cut its East Asian growth forecast and euro-area finance ministers meet to discuss the region’s debt crisis. Hungary’s government forecast on Oct. 5 that the economy will contract 1.2 percent in 2012, compared with a previous estimate of 0.1 percent growth, and that 2013 will see 1 percent expansion, rather than the 1.6 percent projected initially.

The World Bank’s lower forecasts contributed to worsening stock market sentiment, Jozsef Miro, an analyst at Erste Group Bank AG, wrote in a research report today.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net