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Bourse That Championed Capitalism in Eastern Europe Eyes Revival

  • State taxes, seizure of pension assets spurred trading slump
  • Hungary targeting 10 IPOs each year in stock market revamp
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Tamas Hegedus, an equity trader at Hungary’s largest brokerage, says he’s hoping he won’t be disappointed a second time as the government pledges to revive a stock market hobbled by state interference.

Trading volumes on the bourse declined to $6 billion in 2014 from as high as $34 billion seven years earlier after Prime Minister Viktor Orban raised corporate taxes and seized pension-fund assets to prop up state finances. The government and the central bank are now asking investors to buy into a plan to sell state assets and restore some luster to a market that was among the first to reopen after the fall of Communism.