Bloomberg News

Hungarian Shares Set for 7-Week High on Euro-Region Bailout Deal

October 27, 2011

Oct. 27 (Bloomberg) -- Hungary’s benchmark stock index extended gains, climbing 21 percent from this year’s low in September, after euro-area leaders agreed to expand a bailout plan to halt the region’s sovereign debt crisis.

The BUX gauge of companies rose 4 percent to 18,057.7 by 3:37 p.m. in Budapest, headed for its highest close in seven weeks. It’s gained 21 percent from its lowest point this year on Sept. 26. OTP Bank Nyrt., the country’s biggest bank with a 28 percent weight in the BUX, jumped 6.5 percent, the most in a month, to 3,664 forint. Oil refiner Mol Nyrt. gained 5.4 percent to 17,705 forint.

Global stocks and commodities surged after French President Nicolas Sarkozy said the bailout fund will be leveraged by four to five times, and investors have agreed to a writedown of 50 percent on Greek debt. The euro area is the main market for Hungarian exports.

--Editors: Tim Farrand, Stephen Kirkland

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

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


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