Mol Nyrt., Hungary’s largest refiner, fell the most in more than two weeks as the government prepared to cut prices on gas and electricity.
The shares fell 3.6 percent to 17,485 forint by the close in Budapest, the biggest decline since Nov. 20. The benchmark BUX stock index, in which Mol has the biggest weighting at 33 percent, slid 1.5 percent, the most after Egypt among 94 equity indexes tracked by Bloomberg worldwide.
The Development Ministry will work out plans to lower utility prices by 10 percent because public utilities should not be “part of the world of profit,” MTI state news service reported yesterday, citing spokesman Andras Giro-Szasz. The cuts are negative for Mol via its gas wholesale and transport units, Akos Kuti and Gergely Gabler, Budapest-based analysts at broker Equilor Befektetesi Zrt., wrote in a research report today.
“The government will probably fund the price cuts not from state sources but by forcing it down the throat of energy suppliers,” the analysts said.