Dec. 3 (Bloomberg) -- Gedeon Richter Nyrt., Hungary’s biggest drugmaker, rose the most more than four months as a technical signal indicated the stock was oversold.
The shares rose 2.8 percent to 36,500 forint by the close of trading in Budapest, the biggest advance since July 27. The stock’s 13 percent drop last month pushed its 14-day relative strength index below the 30 level, which some analysts consider as oversold, on Nov. 30. The RSI was at 40 today. The benchmark BUX stock index, in which Richter has a 19 percent weighting, fell 0.3 percent.
Richter had the biggest monthly drop in more than a year in November as it was the only Hungarian stock removed from the MSCI Inc.’s Hungary Index as part of a semi-annual review of the gauge’s members, effective from the start of this week, according to a statement on MSCI’s website on Nov. 14.
“We are expecting the selling pressure to be disappearing from today, allowing the stock to head toward its fair value, which is seen well above 40,000 forint by most,” Jozsef Miro, a Budapest-based analyst at Erste Group Bank AG, wrote in an e-mailed report today.
Traders bought and sold 163,825 Richter shares today, more than 330 percent of the three-month daily average, according to data compiled by Bloomberg. Volume soared to a record 1.1 million shares on Nov. 30.
To contact the reporter on this story: Andras Gergely in Budapest at firstname.lastname@example.org
To contact the editor responsible for this story: Wojciech Moskwa at email@example.com