Mol Nyrt., Hungary’s largest refiner, fell to the lowest in more than two months, after Nepszabadsag reported deductions from a new 50 percent tax rate for energy companies won’t apply to all of their investments.
The shares fell 2.1 percent to 17,125 forint by the end of trade in Budapest, the lowest on a closing basis since Sept. 6. The benchmark BUX stock index, in which Mol has the biggest weighting at 32 percent, slumped 1.5 percent to 17,747.81.
Deductions from the tax rate announced last week will only apply to investments that create a “large number of jobs,” Nepszabadsag said, citing Peter Tajti, head of an industry group representing natural-gas distributors. Few of the investments expected in Hungary’s gas industry will be eligible for the deduction, Tajti said.
“This is clearly a negative development that is likely to trigger another sell-off and scare away investors for a while,” Peter Csaszar, a Warsaw-based analyst at KBC Groep NV, wrote in a research report today. “The majority of Mol’s domestic investments in the energy business are of a maintenance nature, thus it seems unlikely that Mol will be able to fully benefit.”