Richter Jumps Most in 6 Weeks on Stock Split: Budapest MoverAndras Gergely
Gedeon Richter Nyrt., Hungary’s biggest drugmaker, jumped the most in six weeks on speculation a planned 10-1 split in the stock’s face value this month will see the company returned to MSCI Inc.’s index for the country.
The shares rose 2.8 percent to 34,890 forint by the close in Budapest, the strongest gain since May 24. Volume was 131 percent of the three-month average. The benchmark BUX stock gauge rose 2 percent.
Richter plans to complete the reduction in face value to 100 forints ($0.44) from 1,000 as of July 16, according to a statement to the Budapest Stock Exchange today. The split, which is happening earlier than expected, may help increase trading volume, analysts at Erste Group Bank AG and Equilor Befektetesi Zrt. said in research reports today.
“The news is a positive surprise because earlier the company said this move would only happen sometime in the fall,” analysts at Erste including Jozsef Miro in Budapest wrote in their note.
Higher volumes may help Richter return to MSCI’s basket of Hungarian equities, the Erste and Equilor analysts said. Richter fell to a 6-month low in November before it was dropped from the index.