Bloomberg News

OTP Bank Declines for Second Day, Drags Hungary’s BUX Lower

October 03, 2011

(Updates with closing share prices in second paragraph.)

Oct. 3 (Bloomberg) -- OTP Bank Nyrt., Hungary’s biggest lender, fell for a second day, dragging the benchmark BUX index lower, as concern that Hungarian local and regional governments will default on debt worsened a slump in European equities.

OTP weakened 5.9 percent to 3,055 forint as of the 5 p.m. end of trade in Budapest. The BUX gauge, in which OTP has a 24 percent weighting, fell 1.7 percent to 15,509.68.

The government wants to restructure the 180 billion forint ($819 million) of debt amassed by the nation’s 19 counties, Prime Minister Viktor Orban said today. Emerging-market stocks extended losses after completing the worst quarterly drop since 2008 amid mounting concern there will be a world economic slowdown and European leaders prepared to weigh the risk of a Greek default.

--Editors: Alan Purkiss, Chris Peterson

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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