Magyar Telekom Gains to Highest Level in a Month: Budapest Mover
Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG, rose to the highest in a month after Nepszabadsag reported the government may be giving up on plans to start a competing mobile network provider.
The shares rose 1.5 percent to 419 forint by 11:20 a.m. in Budapest, the strongest since Oct. 10 on an intraday basis. The benchmark BUX stock index slipped less than 0.1 percent to 19,039.
While the government said in October it still wanted to encourage the opening up of the telecommunications industry to reduce prices for consumers, the Cabinet may now decide to abandon the plan, Nepszabadsag said, citing unidentified people. A Budapest court in September voided a tender that awarded a license to a group of state-owned companies to compete with Magyar Telekom and the Hungarian units of Vodafone Group Plc and Telenor ASA.
“We expect some positive reaction in Magyar Telekom shares” to the report, Gergely Palffy, a Budapest-based analyst at KBC Groep NV, wrote in a research report.
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