Nov. 16 (Bloomberg) -- Gedeon Richter Nyrt., Hungary’s biggest drugmaker, had the biggest two-day decline in four years after MSCI Inc. said it will drop the company from its Hungarian index at the end of this month.
The shares slumped 3.7 percent to 37,000 forint, bringing its decline in the past two trading sessions to 8.9 percent, the most on closing basis since the two days through Nov. 6, 2008. The benchmark BUX stock index in which Richter has a 19 percent weighting slid 1.7 percent.
Richter was the only Hungarian stock to be removed from the MSCI Hungary Index as part of a semi-annual review of the gauge’s members, effective Nov. 30, according to a statement on MSCI’s website. Investment fund that follow MSCI indexes will probably be selling Richter shares right through the date of the index change, according to Equilor Befektetesi Zrt. and KBC Groep NV.
“The selling pressure in the next two weeks can create good buying opportunities,” Gergely Palffy, Budapest-based analyst at KBC Securities, wrote in a research report today.
MSCI cut Richter from the index citing lower trading volume, Equilor said in the research note.
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