Bloomberg News

OTP Bank Declines for Third Day on Tax Extension: Budapest Mover

November 09, 2012

OTP Bank Nyrt. (OTP), Hungary’s largest lender, fell for a third day as the government proposed to tax trading of financial securities.

The shares slid 0.5 percent to 4,061 forint by the close in Budapest, extending the week’s drop to 2.1 percent. The benchmark BUX stock index slipped 0.1 percent.

Hungary’s government, which earlier planned to tax transactions such as cash withdrawals from ATMs, is planning to extend the scope of the levy to buying and selling of securities including derivatives, according to a draft bill published by the Economy Ministry late yesterday.

The plan is “definitely unfavorable” for stocks, Jozsef Miro, a Budapest-based analyst at Erste Group Bank AG, wrote in an e-mailed report today.

Developing-nation stocks declined for a second day, with the benchmark MSCI Emerging Market index retreating 0.4 percent, after India’s Oil & Natural Gas Corp. posted its biggest profit drop in four years and a European official said Greece’s bailout may be delayed.

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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