Bloomberg News

OTP Leads BUX to Longest Rally in Eight Months: Budapest Mover

September 07, 2012

OTP Bank Nyrt. (OTP), Hungary’s largest lender, led the country’s stocks to the longest streak of gains in eight months on speculation the European Central Bank’s plan to buy euro area bonds will ease the region’s debt crisis.

The shares jumped 1.9 percent to 3,850 forint by 11:12 a.m. in Budapest. The benchmark BUX index rallied 1.4 percent to 18,200.17 in a sixth day of advances, the longest such series since January.

Emerging-market stocks rose the most in a month yesterday after ECB President Mario Draghi said policy makers agreed to an unlimited and sterilized bond-purchase program, easing concern the region’s debt crisis will curb exports from developing nations. The forint and Hungarian bonds slumped yesterday after Prime Minister Viktor Orban said he rejected conditions demanded by the International Monetary Fund and the European Union for a credit line.

The ECB bond plan is lifting OTP’s stock, Zoltan Varga, an analyst at broker Quaestor Zrt., wrote by e-mail. “Should the global mood of optimism fade, the focus could quickly return to the domestic concerns.”

European stocks rose today, extending yesterday’s biggest rally in a month, as investors awaited a U.S. report on payrolls and unemployment.

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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