Global Stocks Outperformer Hungary Is Now Even More Attractive

  • BUX Index offers bargains, even after 117% rally in five years
  • KBC says investors overlooking strong Hungarian fundamentals
Photographer: Balint Porneczi/Bloomberg
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After half a decade of stellar performance, the Hungarian equity market is only becoming more alluring.

Souring global sentiment has made stocks in the ex-communist country the cheapest since 2013 even as the outlook for Hungarian company profits keeps improving. The BUX Index now trades at 8.6-times estimated earnings, on par with frontier-market Romania and compared with the 11.5-times ratio for the MSCI Emerging Markets Index.