OTP Bank Nyrt., Hungary’s largest lender, snapped a seven-day rally after Fitch Ratings warned it’s “very unlikely” to lift the country to investment-grade because of the government’s economic policies.
The shares fell 1.2 percent to 4,599 forint by 11:46 a.m. in Budapest after advancing 10 percent in the past seven trading sessions. The benchmark BUX stock index slid 0.5 percent, paring this week’s advance to 2.2 percent.
Hungarian shares and government bonds erased earlier gains today after Fitch Ratings director Matteo Napolitano said at a conference in Warsaw that the “unpredictable” policies of Prime Minister Viktor Orban’s government and the shrinking economy made a rating upgrade unlikely. Fitch rates Hungary BB+, the highest junk category, with a stable outlook.
OTP’s relative-strength index rose as high as 80 yesterday and last traded at 74, above the level considered as “overbought” by some analysts. The RSI gains helped explain OTP’s retreat today, Akos Kuti, the Budapest-based head of research at broker Equilor Befektetesi Zrt., said in a telephone interview.