OTP Bank Snaps Nine-Day Rally Leading BUX Slump: Budapest Mover
OTP Bank Nyrt. (OTP), Hungary’s largest lender, snapped a nine-day rally to drop the most in three months on concern the central bank may deploy unconventional methods for monetary easing under its next president.
The shares fell 3.1 percent to 4,549 forint by the close in Budapest after advancing 11 percent in the past nine trading sessions. The benchmark BUX stock index slid 2.3 percent, the biggest slide on a closing basis since June and the worst performance today among 94 indexes tracked by Bloomberg worldwide.
Hungary’s government may nominate Economy Minister Gyorgy Matolcsy to replace central bank President Andras Simor in March, hvg.hu reported. Matolcsy has urged the bank to “bravely use unorthodox tools” and follow the European Central Bank in providing stimulus for the economy.
“The Hungarian market is among the worst performers partly because of the rumors that the government plans to gobble up the central bank,” Zsolt Balasy, a Budapest-based equities analyst at Bayerische Landesbank’s MKB unit, said in a telephone interview today.
A 19 percent rally in the past two months pushed OTP’s relative-strength index as high as 81 yesterday, above the 70 level which indicates an excessive rally to some analysts. The RSI last stood at 65.
“As soon as sentiment deteriorates slightly, there is a correction in this stock,” Balasy said.
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