Richter Caps Best Week Since May on Share Split: Budapest MoverAndras Gergely
Gedeon Richter Nyrt., Hungary’s biggest drugmaker, capped the best weekly gain in almost two months after carrying out a 10-1 split in the stock’s face value to boost liquidity.
The shares rose 3.3 percent to 3,686 forint by the close in Budapest, extending the five-day advance to 4.3 percent, the strongest performance since the week through May 24. Volume amounted to 155 percent of the three-month average today. The benchmark BUX stock gauge rose 1.7 percent.
Yesterday marked the first day of trading with shares of 100 forint nominal value, after the 1,000 denomination ended trade the previous day. The higher volumes caused by the lower face value may help Richter return to MSCI Inc.’s basket of Hungarian equities, analysts at Erste Group Bank AG and Equilor Befektetesi Zrt. said.
Richter fell to a 6-month low in November before it was dropped from the index. The shift to the new face value will be officially completed for accounting purposes on July 16, according to Richter’s statement to the Budapest Stock Exchange.