Magyar Telekom Hits 6-Week High on Competitor: Budapest Mover

Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG, rose to the highest level in six weeks after Napi Gazdasag reported a potential state-backed competitor lost its two top executives.

The shares advanced 2.1 percent to 396 forint by the close in Budapest, the second-best performance in the 11-member BUX index, which added 1.1 percent.

Istvan Kalmar, chairman of MPVI Mobil, and Chief Executive Officer Pal Schmidt have left the company, Napi reported, without citing anyone. Gabor Intody, a spokesman for MPVI, declined to comment on the report. MPVI has been fighting a court case on a tender which it won to become Hungary’s fourth mobile operator, competing with incumbents Magyar Telekom and the units of Vodafone Group Plc and Telenor ASA.

“The entry of the fourth mobile provider may be further delayed,” Gergely Palffy, a Budapest-based analyst at KBC Groep NV’s broker unit, said in a telephone interview. “That’s certainly behind Magyar Telekom’s gains.”

The shares have rebounded 12 percent from a record low on Dec. 21. The stock’s 14-day relative strength index fell to 25 on Dec. 21, below the 30-level which signals to some analysts a security’s slump is excessive and it may be poised for a reversal. The RSI last traded at 58.

“The stock was oversold on a technical basis,” Palffy said.