Hungary’s stocks climbed the most in 11 months after better-than-anticipated results from the country’s biggest telecommunications company and export data from Germany and China helped lift eastern European markets.
The BUX index advanced 2.8 percent, the largest increase among the 94 major indexes tracked by Bloomberg and the biggest daily gain since Sept. 14. OTP Bank Nyrt., Richter Gedeon Nyrt. and Mol Nyrt. all surged at least 2.5 percent.
Budapest-listed companies are gaining as Hungary’s economy recovers from a second recession since 2009. Magyar Telekom closed at a three-week high after announcing that second-quarter net income increased 14 percent and boosting its revenue forecast for this year.
OTP, the country’s largest lender, climbed 2.5 percent to 4,510 forint. “The share has finally joined regional lenders that have been rallying in the past sessions,” equity analyst Attila Gyurcsik at Hungary’s largest brokerage, Concorde Befektetesi Zrt., said by phone.
The bank, which has a 30 percent weight in the gauge, has dropped 8.9 percent in the past month, the worst showing among 16 leading Eastern European lenders tracked by Bloomberg.
The stock declined as Hungary’s government announced plans in mid-July to help households with foreign-currency mortgages, which fueled speculation about potential new costs for lenders. Negotiations between the banks and the government have started.
Medicine-maker Richter gained 4.3 percent to 3,719 forint, the most in 22 months, as trading volumes amounted to 334 percent of the stock’s three-month daily average. A growing number of investors expect Richter to be re-included in MSCI’s gauge of emerging-market stocks next month, Gyurcsik said.
Oil-company Mol advanced 2.9 percent to 16,600 forint, reversing a two-day, 4 percent drop caused by concerns over the future of its Croatian subsidiary INA. Magyar Telekom gained 0.9 percent to 325 forint, the highest close since July 18.
The BUX has increased 3.4 percent this year, compared with a 10 percent drop in the MSCI emerging markets index. German exports jumped 0.6 percent from May and Chinese shipments overseas climbed 5.1 percent in July, reports showed today.