Gedeon Richter Drops Most in 14 Months on MSCI: Budapest Mover
Gedeon Richter Nyrt., Hungary’s biggest drugmaker, plunged the most in 14 months as MSCI Inc. (MSCI) said it will drop the company from its Hungarian index at the end of this month after a semi-annual review of the gauge’s members.
The shares slumped as much as 8.7 percent and last traded 5.5 percent lower at 38,400 forint by the close in Budapest, the biggest drop since September 2011. The benchmark BUX stock index in which Richter has a 19 percent weighting slid 1.8 percent.
Richter was the only Hungarian stock to be removed from the MSCI Hungary Index, effective Nov. 30, according to a statement on MSCI’s website. Investment funds which follow MSCI indexes will probably sell Richter shares, according to Akos Kuti, a Budapest-based analyst at broker Equilor Befektetesi Zrt.
“The exclusion will lead to selling pressure on the stock over the next few days until the exclusion date,” Carsten Hesse, a London-based analyst at Wood & Co., wrote in a research report today. Hesse said Richter’s deletion was a “major surprise.”
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