Hungary Stocks Soar to 9-Year High on Upgrade, Polish Risks
- Benchmark BUX stock index at highest since August 2007
- Hungary benefiting from Poland capital outflows, analysts say
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Hungarian stocks rose to the highest level in more than nine years as the country’s return to investment-grade credit rating helped it benefit from outflows triggered by increased political risks in Poland.
The benchmark BUX index in Budapest has soared 33 percent in the past year to trade at its highest level since July 2007, outperforming Poland and the Czech Republic as well as the MSCI emerging-market gauge, which advanced 5.3 percent over the period. Hungary’s upgrades this year to investment category by Fitch Ratings and S&P Global Ratings, coupled with withdrawals from Polish and Turkish assets on political woes, have been driving the rally, said analysts at Budapest-based brokerages Equilor Zrt. and Concorde Zrt.